Dream Industrial REIT enters $132M U.S. property deal as part of expansion plans

TORONTO – Dream Industrial REIT (TSX:DIR.UN) says it has entered into an agreement to acquire four industrial distribution properties in the United States for $131.5 million.

The Toronto-based real estate investment trust company says the deal involves industrial hubs in Memphis, Tenn., Orlando, Fla., and Charlotte, N.C and fits into its strategic expansion plans.

Dream Industrial REIT acquired properties

It says the leasable properties comprise about 186,000 square metres and are occupied by a mix of large, blue-chip companies and medium-sized enterprises, including Coca-Cola Refreshments USA Inc. and Nissan North America.

Closing of the deal is expected to occur in stages between December and mid-January.

The Acquired Properties consist of four high quality industrial properties (approximately 2.0 million square feet of GLA) that further expand the Trust’s presence in the United States. The Acquired Properties are highly functional distribution and light manufacturing facilities with an average ceiling height of 31 feet and ample trailer and car parking. The Acquired Properties include a combination of single and multi-tenant buildings that are well located in strong U.S. industrial hubs. The Acquired Properties are strategically situated in their respective markets, with each property located in close proximity to major U.S. cities and having excellent access to interstate highways and transportation nodes. The Acquired Properties are 100% leased with a weighted average lease term of 6.1 years. The tenants represent a mix of large, blue chip companies and medium sized enterprises, including Coca-Cola Refreshments USA Inc. and Nissan North America. Source: Dream Industrial REIT
Upon completion of the Acquisition, the Trust’s portfolio will comprise 218 properties with a total GLA of approximately 19.0 million square feet, of which nearly 15% of GLA, or approximately 2.8 million square feet, will be located in the United States. Nissan North America will be the Trust’s largest tenant by GLA at approximately 6.2%. The following table highlights the Trust’s top 10 tenants, on a pro forma basis, after giving effect to the completion of the Acquisition. Source: Dream Industrial REIT
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