Singapore’s GIC and Canada’s Dream Industrial REIT Team Up for a Big Move
What’s happening? On Monday (Nov 7), Singapore’s sovereign wealth fund GIC and Canada’s Dream Industrial REIT (DIR) announced they’re buying Summit Industrial Income REIT for roughly C$4.46 billion (about $3.30 billion in U.S. dollars). That’s excluding any debt on the table.
Why the partnership matters
- Joint Venture: GIC will own 90 % of the deal; DIR gets the remaining 10 %.
- For GIC, this is a continuation of its global real‑estate spree. Just weeks ago, the firm teamed up with another private‑equity partner to snap up U.S. Store Capital Corp for around $14 billion.
- DIR’s new portfolio size will more than double, thanks to this partnership. The JV also gives DIR a fresh capital source, freeing it from the constraints of capital markets.
Summit’s shareholders get a sweet deal
Summit’s investors will receive C$23.50 (S$17.40) per unit in cash—a 31.1 % premium versus the close on Friday. That’s a nice cash‑in‑hand for any unit holders.
Financials at a glance
- Portfolio Value: Summit’s assets hit ~25 million square feet with a net book value of about $5.0 billion.
- Deal Value: Based on Scott’s 189.85 million units (as of June 30), the transaction equals C$4.46 billion. Adding debt bumps the total to C$5.9 billion.
- New Industrial Footprint: The JV is poised to unlock Canadian industrial opportunities that GIC has only begun to touch.
In short, this is a big move that shows GIC’s appetite for international real‑estate, and DIR’s ambition to grow without stealing from the market – all while giving existing shareholders a substantial cash payout. It’s the kind of deal that makes anyone think, “Ha – I’d love to be in on this tomorrow!”