Canada Pension Plan Investment Board (CPP Investments) will gain a 90 per cent interest in a portfolio of 12 warehouse fulfillment centres through a new joint venture with Dream Industrial Real Estate Investment Trust (REIT). The initial $805 million purchase will give the pension fund the majority ownership stake in the industrial assets, while the REIT retains a 10 per cent interest and provides property management services. In future, the partners aim to acquire up to $3 billion worth of assets with value-add opportunities in major Canadian markets.

“The Canadian industrial sector continues to demonstrate resilient demand and meaningful long-term growth drivers, supported by a structurally high need for well-located space as supply chains and logistics continue to evolve,” says Sophie van Oosterom, managing director and head of real estate at CPP Investments. “By partnering with Dream, a leading institutional asset manager and operating platform, we can efficiently scale our exposure in the Canadian market to capture this growth and drive long-term value for the benefit of CPP contributors and beneficiaries.”

The 12 facilities are located in the Greater Toronto Area, London, ON, Montreal and Calgary, and generate an average base rent of about $11 per square foot with a weighted average lease term of three years. The purchase price equates to $16.74 per unit — slightly above the net asset value for the holdings as calculated under International Financial Reporting Standards (IFRS) as of Sept. 30, 2025, and a 37 per cent premium on the REIT’s TSX unit price as of mid-December. The transaction is expected to close in the first half of 2026.

“We are excited to partner with CPP Investments to continue to expand our presence in the Canadian industrial market,” affirms Alex Sannikov, chief executive officer of Dream Industrial REIT. “This new joint venture is highly complementary to the strategic direction of Dream Industrial and our existing private capital partnerships.”