Dream Global REIT (the REIT) has entered into a sale and purchase agreement for a portfolio of 135 office and light industrial properties in the Netherlands, which the REIT calls one of the largest and growing office real estate markets in Europe.
“In creating Dream Global in 2011, we saw an opportunity to enter Germany and to acquire quality real estate at a very good time in the real estate cycle,” said Jane Gavan, chief executive office of Dream Global REIT. “Over the past six years, we have created a valuable portfolio, established a skilled management team and built local relationships. We are now leveraging that experience and track record to strategically expand our European presence into the Netherlands at what we believe to be an opportune time in their real estate cycle.”
The portfolio includes 101 office properties that total more than 4.8 million square feet of gross leasable area (GLA) and are worth $728.7 million. About 68 per cent are located in the Randstad, which is the largest urban region and primary office market in the Netherlands, and includes Amsterdam, Rotterdam, the Hague and Utrecht. This portfolio also includes some value-add properties which are currently being repositioned and are expected to be a source of growth for the REIT.
The industrial portfolio consists of 34 properties of 2.9 million square feet of GLA that are primarily located in the Netherlands’ five largest industrial hubs. The REIT believes that investment in this sector is highly desirable, given the strong fundamentals supporting the European industrial real estate market. The Industrial Portfolio offers the REIT stable, high-quality cash flows, with the potential to provide further strategic benefits in the future.
“We are entering a market that has good office fundamentals and growth potential, and we will have a sizeable Dutch real estate management team that has a successful track record of increasing occupancy and achieving NOI3 growth.” added Gavan. “We believe that this transaction is a meaningful milestone for Dream Global REIT on the path to becoming the premier European REIT for capital market investors.”