At a glance
- The five newly developed mid- and large-bay assets total 2.1 million square feet and were built between 2020 and 2024, according to IREI, which first reported the closing.
- For family offices and fund selectors screening Canadian industrial exposure, the purchase works out to roughly C$279 per square foot.
- CPP Investments holds 90% of the venture, with Dream Asset Management Corp. and Dream Industrial REIT as partners.
CPP Investments and Dream Unlimited closed the purchase of five Greater Toronto Area logistics buildings for C$585.8 million ($418.6 million). The deal pushes the partners' Canadian industrial joint venture past C$1.4 billion ($1 billion) deployed.
The five newly developed mid- and large-bay assets total 2.1 million square feet and were built between 2020 and 2024, according to IREI, which first reported the closing. The portfolio is fully leased to national and international companies and generates stable in-place income, with embedded mark-to-market rental growth the partners can capture as leases roll. The buildings carry 36- to 40-foot clear heights, trailer parking and a loading ratio of one door per 8,000 square feet.
For family offices and fund selectors screening Canadian industrial exposure, the purchase works out to roughly C$279 per square foot. The rent roll was not disclosed, so a yield cannot be derived from the purchase price.
CPP Investments holds 90% of the venture, with Dream Asset Management Corp. and Dream Industrial REIT as partners. The partners have a C$3 billion ($2.1 billion) target for Canadian industrial properties, leaving more than half of the target uncommitted.
The industrial joint venture is just under halfway to its C$3B target
Capital deployed in Canadian industrial properties vs the C$3 billion target, C$ billions
- Actual
- Target
- JV capital deployed$1.4B of $3B · 46.7%
Show as table
| Item | Actual | Target | Of target |
|---|---|---|---|
| JV capital deployed | $1.4B | $3B | 46.7% |
CPP's parallel LXP take-private
CPP Investments and Brookfield Asset Management completed their acquisition of LXP Industrial Trust on Nov. 2, an all-cash transaction that valued the REIT at about $5.2 billion including net debt and preferred equity, with shareholders receiving $61.20 a share, the companies said. LXP's 107 properties total about 52 million square feet in Sunbelt and Midwest markets and will be integrated into Brookfield's logistics platform of more than 255 million square feet across over 850 properties in 20 countries.
“The acquisition of LXP adds a high-quality, scaled portfolio of modern logistics properties to our diversified portfolio of U.S. real estate investments,” said Sophie van Oosterom, head of real estate at CPP Investments. The pension fund has also committed $309 million in October for a 27% stake in Prestige Hospitality Ventures' India hotel platform, as Private Wealth Daily previously reported.
Reported by the Deals desk from IREI and GlobeNewswire — Finance. Published . Corrections