Dream Industrial REIT Closes $ 287.5 Million Subscription Receipt Offer
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TORONTO – (BUSINESS WIRE) –
DREAM INDUSTRIAL REIT (DIR.UN-TSX) (“Dream Industrial REIT” or the “Trust”) today announced the closing of its previously announced offering of Trust Subscription Receipts (the “Subscription Receipts”) at a price of $ 13.70 per Subscription Receipt (the “Offering”). The syndicate of underwriters, led by TD Securities Inc., elected to exercise its over-allotment option in its entirety, resulting in the issuance of a total of 20,987,500 subscription receipts today. hui for total gross proceeds of $ 287,528,750. Subscription receipts issued in connection with the offering will begin trading on the Toronto Stock Exchange today under the symbol DIR.R.
The net proceeds of the Offering will be held in escrow and will be used by the Trust to fund a portion of the purchase price of its previously announced acquisition of shares of a company that will indirectly hold up to 31 quality institutional logistics properties. through Europe. (the Acquisition “). The Trust is in exclusive and advanced discussions with the Vendors with respect to entering into an Acquisition Agreement. The Trust expects that, if an agreement is made, the Acquisition will be completed. within the next 60 days, however, there can be no assurance that a definitive agreement will be reached.
Each subscription receipt represents the right of the holder to receive, at the closing of the acquisition, without payment of additional consideration, a unit of the Trust. Holders of Subscription Receipts will be entitled to payment equivalent to the Distributions in respect of all distributions on Units of the Trust for which the record dates occur during the period beginning on the date hereof until the last day on which the subscription receipts remain unpaid. The recording date of each payment equivalent to a distribution will be the same as the recording date of the corresponding distribution declared on the Units. In the event that a termination event occurs after a distribution has been declared on the Units but before the date of registration of such distribution, holders of Subscription Receipts will receive a payment equivalent to a pro-rated distribution at the with regard to this distribution declared on the shares.
Cash distributions by the Trust on its units are payable monthly on or about the 15th of each month. The first payment equivalent to the distribution that purchasers of Subscription Receipts under the Offer will be entitled to receive will be payable on or about June 15, 2021 to Subscription Receipt holders of record at the close of business on May 31, 2021.
The net proceeds from the sale of the Subscription Receipts (the “Escrow Proceeds”) will be held by Computershare Trust Company of Canada, as Subscription Receiving Agent pursuant to a Subscription Receipt Agreement and invested in accordance with the subscription receipt agreement.
If the Acquisition is not completed before August 30, 2021 or if the Acquisition is terminated earlier, the aggregate subscription price and any unpaid distribution equivalent payment, net of any applicable withholding tax, will be paid to the holders of Subscription Receipts and Subscription Receipts will be canceled.
This press release does not constitute an offer to sell any securities in the United States (“United States”). The securities offered have not been and will not be registered under the US Securities Act of 1933, as amended, and are therefore not offered for sale and may not be offered, sold or delivered, directly or indirectly to United States, its possessions. and other matters under its jurisdiction or to, or on behalf of or for the benefit of, a U.S. person, except as exempted from the registration requirements of that law.
About Dream Industrial REIT
Dream Industrial REIT is an unincorporated open-ended real estate investment trust. As at March 31, 2021, the Trust owned and operated a portfolio of 186 industrial assets (280 properties) comprising approximately 28.8 million square feet of gross leasable area in key markets in North America and a growing presence in European industrial markets. solid. The objective of the Trust is to continue to grow and improve the quality of its portfolio and to provide attractive total returns to its unitholders. For more information, please visit www.dreamindustrialreit.ca.
This press release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information can generally be identified by the use of forward-looking terms such as “prospect”, “objective”, “may”, “will”, “expect”, “intend”, “estimate”, ” anticipate ”,“ believe ”,“ should ”,“ plan ”or“ continue ”, or similar expressions suggesting future results or events. Some of the specific forward-looking information contained in this press release may include, among other things, the details, status and expected timing of the closing of the acquisition; the use of the proceeds of the investment; and the right of holders of subscription receipts to payments equivalent to the distribution. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the control of Dream Industrial REIT and which could cause actual results to differ materially from those that are disclosed or implied by these predictions. information search. These risks and uncertainties include, but are not limited to, global and local economic and business conditions; the uncertainties surrounding the COVID-19 pandemic; the fulfillment or waiver of any outstanding conditions precedent to the closing of the acquisition; completion of the acquisition; fluctuations in interest rates and exchange rates; and the risk that unforeseen events will cause the actual capital structure of the Trust, the overall cost of debt and the results of operations to differ from what the Trust currently expects. Our objectives and forward-looking statements are based on certain assumptions about each of our markets, including that the general economy remains stable, that the general economic recovery and gradual growth continues through the remainder of 2021, interest rates remain stable, conditions within the real estate market remain consistent, competition and availability of acquisitions remain consistent with the current climate and as financial markets continue to provide easy access to equity and / or debt. All forward-looking information contained in this press release is valid as of the date of this press release. Dream Industrial REIT does not undertake to update this forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. Additional information on these assumptions, risks and uncertainties can be found in the documents filed by Dream Industrial REIT with the securities regulatory authorities, including its most recent Annual Information Form and MD&A. These documents are also available on the Dream Industrial REIT website at www.dreamindustrialreit.ca.
Dream industrial REIT
Chief executive officer
Source: Dream Industrial REIT