Dream Unlimited Corp. Provides Business Update

TORONTO, June 11, 2020 (GLOBE NEWSWIRE) -- Dream Unlimited Corp. (TSX: DRM) (“Dream”, “the Company” or “we”) today provided a business update on transactional and operational activity for the month of June 2020.  

Dream has now closed on the sale of its indirect interest in a renewable power portfolio to Potentia Renewables Inc. In addition, we are near completion of the re-financing of the Distillery District, which comprises 395,000 sf of commercial and retail GLA in downtown Toronto. In aggregate, these transactions will generate cash of $130 million for Dream, which will be used to pay down corporate level debt and provide additional liquidity for the Company.

We are pleased to announce that Dream has entered into an agreement to acquire a 50% interest in a portfolio of apartments located in Dallas, Texas, expected to close in early July 2020 (the “Dallas Acquisition”). The 1,200-unit portfolio will be acquired alongside Pauls Corp. for approximately $150,000 per unit, for a total investment of $15 million USD, after assuming agency debt and mezzanine financing at Dream’s share. Our current intent is to hold the portfolio for the long-term, which may become the seed investment for our recently announced private equity arm, Dream Equity Partners. Through the launch of Dream Equity Partners, we intend to leverage our core competencies in managing and developing office, multifamily, industrial and mixed-use assets in Canada, the United States and Europe focused on core, core-plus and value-add investments.

Dream has approved the commencement of servicing of the first phase of Alpine Park, within Providence, located in the south west of Calgary. We consider this to be a significant milestone for Dream as the first phase of Alpine Park was originally acquired in 1997. Based on current market assumptions, we expect initial phases of Alpine Park to generate income between 2021 – 2026 and cash of approximately $70 million. The first phase of servicing will require an additional $35 million of cash and we anticipate having $36 million of committed sales by the end of June 2020. Our initial phases of Alpine Park comprise 136 acres of Dream’s total 1,600-acre landholding within Providence. Over the last few years we have reduced working capital in Western Canada, bringing in a majority partner in Glacier Ridge, selling parcels, lots and houses, and selectively starting communities that are quickly cash flow positive. We have generated approximately $60 million of cash from Western Canada in 2020 and expect, over time, to earn profits and generate cash flow while reducing our overall investment in the 9,100 acres of land within this division.