Dream Industrial forms $3B Canadian industrial JV

Executive Summary

• Canada Pension Plan Investment Board (CPP Investments), Dream Industrial REIT, and Dream Asset Management Corp. have formed a $3 billion joint venture to acquire last-mile industrial properties in major Canadian markets.
• The joint venture has allocated $1.1 billion in equity capital, with CPP Investments contributing $1.0 billion (90%) and Dream Industrial contributing $100 million (10%).
• As part of the initial transaction, the joint venture is acquiring a portfolio of 12 Canadian industrial assets totaling 3.6 million square feet from Dream Industrial for a purchase price of $805 million.

Key Details

• Joint Venture Structure: Formed by CPP Investments, Dream Industrial REIT, and Dream Asset Management Corp.
• Total Investment Capacity: Approximately $3.0 billion in industrial assets.
• Equity Capital Allocation:
  • Total Equity: $1.1 billion.
  • CPP Investments Contribution: $1.0 billion (90% stake).
  • Dream Industrial Contribution: $100 million (10% stake).
• Initial Portfolio Acquisition:
  • Seller: Dream Industrial.
  • Assets: 12 Canadian industrial properties.
  • Total Size: 3.6 million square feet.
  • Locations: Ontario, Quebec, and Alberta.
  • Purchase Price: $805 million.
• Management Roles:
  • A subsidiary of Dream will serve as the asset manager for the joint venture.
  • A subsidiary of Dream Industrial will provide property management and leasing services.
• Strategic Rationale: To capture resilient demand and long-term growth in the Canadian industrial sector, leveraging supply chain evolution and connectivity to population clusters.
• Advisors:
  • Financial Advisors: TD Securities, RBC Capital Markets, Colliers Capital Markets, and CBRE.
  • Legal Advisors: Stikeman Elliott LLP and King & Spalding LLP.
• Company Context (CPP Investments): Manages the Canada Pension Plan Fund; total fund value was $777.5 billion as of Sept. 30, 2025.
• Company Context (Dream Industrial): Owns/manages a global portfolio of 340 industrial assets (552 buildings) totaling ~73.2 million square feet as of Sept. 30, 2025.

Notable Quotes

• Sophie van Oosterom, Managing Director, Head of Real Estate, CPP Investments: "The Canadian industrial sector continues to demonstrate resilient demand and meaningful long-term growth drivers, supported by a structurally high need for well-located space as supply chains and logistics continue to evolve... By partnering with Dream, a leading institutional asset manager and operating platform, we can efficiently scale our exposure in the Canadian market to capture this growth and drive long-term value for the benefit of CPP contributors and beneficiaries."
• Alex Sannikov, CEO, Dream Industrial REIT: "We are excited to partner with CPP Investments to continue to expand our presence in the Canadian industrial market... This new joint venture is highly complementary to the strategic direction of Dream Industrial and our existing private capital partnerships."
• Michael Cooper, Founder and Chief Responsible Officer, Dream: "This new venture with one of the largest and most respected institutional investors globally is a testament to the strength of our platform... With this partnership, we expect to surpass $30-billion of assets under management and increase our growth rate as we continue to build out our institutional asset management business."