Canadian real estate asset manager Dream has agreed a deal to acquire UK-based industrial and logistics developer and asset manager Chancerygate.
Chancerygate currently manages a portfolio of income producing and development assets worth £1.2bn and as part of the transaction Dream will assume Chancerygate’s investment management and development platform.
Dream Industrial REIT will acquire Chancerygate’s wholly owned real estate assets and co-investment interests across its managed ventures for a consideration of circa £78m and expects to provide an additional £25m of funding to complete the firm’s wholly-owned development projects.
Jamie Cooper, co-president, asset management at Dream, said: “This acquisition is an important step as we continue building a leading European industrial platform at Dream. Chancerygate brings us an exceptional team and an immediate presence in London at the centre of European capital flows. Combined with our existing platform, we are well-positioned to continue to grow our private capital partnership business.”
Alexander Sannikov, CEO of Dream Industrial REIT and co-president, asset management at Dream, added: “With Chancerygate, Dream Industrial REIT enters the UK multi-let industrial market, a sector with attractive operating fundamentals, together with a fully built operating platform and established institutional relationships. The transaction accelerates our European growth strategy and is consistent with our objective of growing accretively through thoughtful allocation of capital and vertically integrated operations.”
Richard Bains, managing director of Chancerygate, said: “We are excited to join Dream, whose long-term investment philosophy and institutional capabilities align closely with the platform we have built at Chancerygate. Over the past three decades, our team has developed a reputation for managing and delivering high-quality assets for some of the world’s most sophisticated investors. Joining Dream gives us access to greater scale, broader resources and an enhanced ability to serve our partners as we enter this next chapter of growth,”
Edward Plumley, co-head of EMEA industrial and logistics, EMEA capital markets at Colliers, which advised Dream on the deal, added: “This is a rare opportunity to acquire a market-leading urban logistics platform at scale with the required expertise to accelerate growth in the new cycle. The transaction highlights the strength of our EMEA capital markets platform to deliver complex cross-border opportunities. Colliers was able to identify the right strategic partner by having a deep understanding of our clients’ strategic objectives.”
