Dream Industrial REIT is under contract to purchase $347 million in European industrial properties, including these four assets in the Netherlands. (Courtesy Dream Industrial)
Dream Industrial REIT (DIR-UN-T) is under contract or in exclusive negotiations to acquire $347 million worth of light industrial and logistics assets in the Netherlands and Germany through seven separate transactions.
“We are very excited to announce our European expansion strategy which will allow Dream Industrial to diversify its portfolio into Europe by acquiring high-quality assets at attractive risk-adjusted returns, pair them with low-cost debt and achieve attractive overall returns for Dream Industrial’s unitholders,” said a statement from Dream Industrial CEO Brian Pauls.
Toronto-based Dream Industrial likes Europe because the fundamentals of the industrial and logistics markets remain attractive. The sector is being driven by the continued growth in e-commerce fueling demand from logistics operators, coupled with a low supply of high-quality and suitable product.
The trust believes the healthy rental growth potential, paired with limited new supply under construction, provides a tailwind for strong performance over the next five to 10 years.
Dream Industrial management is confident modern logistics assets and urban light industrial properties are highly desired by institutional investors, saying they offer superior risk-adjusted returns compared to other asset classes.
Continued Dutch, German expansion
Dream Industrial intends to continue expanding its portfolio in Germany and the Netherlands, which it calls Europe’s most sought-after and liquid logistics markets.
It will also evaluate investment opportunities in other core logistics markets in Western Europe offering compelling returns and the ability to build scale.
The Dutch and German portfolios have a weighted average going-in capitalization rate of 6.1 per cent, a weighted average lease term of 5.3 years and in-place rents below estimated market rents. Dream Industrial intends to fund the acquisitions with cash on hand.
Over the medium term, Dream Industrial is looking to increase its exposure in Europe to approximately 25 per cent of its total portfolio value, from 12 per cent, following the acquisition of the German and Dutch portfolios.
Netherlands market and portfolio
The Netherlands industrial market benefits from healthy economic growth and record-low unemployment levels. It is home to the Port of Rotterdam, the largest container port in Europe and among the 15 largest ports in the world.
Amsterdam’s Schiphol Airport is one of the busiest cargo airports globally.
The strong infrastructure for freight transport, coupled with the development of the e-commerce sector, continues to boost demand for well-located warehouse and logistics space in the Netherlands.
Declining vacancy rates and a low to moderate level of incoming supply have continued to put upward pressure on rental rates.
Dream Industrial’s new Dutch portfolio comprises 34 properties primarily concentrated in major urban centres, including Amsterdam and Rotterdam. More than 80 per cent are located within 30 kilometres of their respective city centres.
The portfolio spans 2.4 million square feet and is 96 per cent leased to more than 70 tenants.
German market and portfolio
New supply remains insufficient to fulfill the growing demand from distribution and logistics users in Germany, as most of the new construction is already pre-leased. This has led to higher rental rates in most markets.
The German portfolio is near Frankfurt and Dresden and was secured by the acquisition team through an off-market channel. It’s comprised of three properties that combine for 738,000 square feet of space and have an average occupancy rate of 92 per cent.
The properties are leased to 18 tenants and located in strong urban logistics locations with excellent transportation access.
The transactions are expected to close in the first half of 2020.
Canadian and American activity
In addition to the European acquisitions, Dream Industrial has nearly $170 million of properties that have recently closed, are under contract, or are part of exclusive negotiations in Canada. These consist of seven separate transactions, primarily in the Greater Toronto Area.
Upon completion of its acquisitions in the Netherlands, Germany and Canada, Dream Industrial’s portfolio will comprise 264 properties with a gross leasable area of 26.3 million square feet and a pro forma gross asset value of $2.8 billion.
Thirty-one per cent will be in Ontario, 22 per cent in Western Canada, 15 per cent in Quebec, 20 per cent in the United States and 12 per cent in Europe.
Dream Industrial remains committed to growing and improving the value of its portfolio across target markets in Canada and the U.S., with acquisition, leasing and portfolio management teams dedicated to each region.
Dream Industrial will continue to leverage its local platform and strategic relationship with The PAULS Corporation to access acquisition and development pipelines in its target markets in the U.S.
In announcing its financial results through three quarters last year, Dream Industrial said it and PAULS were in exclusive negotiations to acquire an interest in approximately 24 acres of development land in Las Vegas. PAULS was expected to serve as development manager.
Dream Global REIT sale
Dream Industrial REIT is an affiliate of Toronto-headquartered Dream Unlimited Corp. (DRM-T), a real estate company with approximately $9 billion of assets under management.
Dream Unlimited’s asset management business includes three Toronto Stock Exchange-listed trusts and institutional partnerships.
While Dream Unlimited has been active in Europe since 1998, it sold all of Dream Global REIT’s subsidiaries and assets — comprised of office and industrial properties in Western Europe, with a focus on Germany and the Netherlands — for $6.2 billion in cash to affiliates of real estate funds managed by The Blackstone Group Inc. in December.
Upon closing of the Blackstone deal, the non-compete clause for acquiring commercial properties in Europe came to an end. Dream Unlimited can now dedicate resources to supporting Dream Industrial’s European expansion program.
Dream Industrial management additions
The European acquisition asset management team which used to be responsible for Dream Global is now committed to sourcing transactions for Dream Industrial. Alexander Sannikov and Bruce Traversy have joined the trust in senior operating and investment roles.
Sannikov was previously chief operating officer of Dream Global and had oversight of its operating performance, portfolio strategy and capital allocation.
Traversy was previously senior vice-president and head of investments for Dream Global and oversaw its investment strategy and execution across Europe.
“Alex and Bruce were invaluable members in helping Dream Global become one of the leading public real estate platforms and brands in Europe since its inception,” Pauls said in a Dream Industrial news release.
“Now, Dream Industrial can leverage Dream’s skills and relationships to spearhead our new European industrial business, improve operations across Canada and work closely with our U.S. industrial platform to help us to continue to deliver long-term value to our unitholders.”
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
