Singapore’s sovereign wealth fund GIC and Canada’s Dream Industrial REIT will acquire Canada’s Summit Industrial Income REIT for approximately C$4.46 billion ($3.30 billion) minus debt, according to separate announcements issued by the businesses on Monday.
According to the releases, GIC and Dream Industrial REIT (DIR) would create a joint venture for the transaction, with GIC holding 90% and DIR the remaining 10%.
This transaction builds on GIC’s prior worldwide real estate acquisitions and provides it access to the Canadian industrial market.
In September, GIC and another private equity fund acquired Store Capital (NYSE:STOR) Corp for around $14 billion.
Summit said in a separate statement that its unitholders would receive C$23.50 per unit in cash, reflecting a 31.1% premium over its Friday closing price.
According to Reuters’ estimates based on Summit’s 189.85 million outstanding units as of 30 June, the acquisition is valued at C$4.46 billion. Summit said that the deal’s total worth, including debt, is $5.9 billion Canadian.
DIR said that the transaction would more than increase the size of its industrial portfolio in Canada, while the JV with GIC would provide a fresh source of finance to pursue acquisitions in Canada without depending on financial markets.
On June 30, Summit’s portfolio consisted of 160 properties totaling 21.6 million square feet, with 13 buildings under construction totaling 2.3 million square feet of potential gross leasable space, for a total net book value of roughly $5 billion.