UK-based industrial developer and asset manager Chancerygate is set to be acquired by Canadian asset manager and developer Dream.
The combined platform will be one of European leaders in the urban industrial sector with 27m sq ft of gross lettable area managed or under development across nine countries.
Dream Industrial REIT will acquire Chancerygate’s wholly owned real estate assets and co-investment interests across its managed ventures for around £78m, gross of certain in-place debt, and expects to fund an additional £25m to complete Chancerygate’s wholly owned development projects. The deal is expected to be closed later this month.
“This acquisition is an important step as we continue building a leading European industrial platform at Dream,” said Jamie Cooper, co-president, asset management of 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.”
Chancerygate managing director Richard Bains added: “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.”
Dream’s European platform will represent over C$6bn (£3.17bn) in industrial and living assets under management, and comprise over 80 professionals across offices in London, Manchester, Birmingham, Düsseldorf, Berlin, Amsterdam, Madrid, Lisbon and Dublin.
With the addition of Chancerygate’s £1.2bn portfolio, Dream’s total global assets is expected to exceed C$30bn (£15.9bn). Dream is the largest industrial platform in Canada, with over 50m sq ft of owned and managed industrial assets and developments.
Alexander Sannikov, chief executive of Dream Industrial REIT and co-president, asset management of Dream, said: “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.”
Dream also announced that it is in advanced negotiations to form a joint venture with a leading global institutional investor to pursue acquisition and development opportunities in the multi-let industrial sector across Europe with a target gross asset value in excess of £428m.
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