Dream Industrial REIT Announces First U.S. Asset Acquisition and Updates Strategy to Increase Unitholder Value With Acquisitions and Developments of Unique Properties

TORONTO, ONTARIO--(Marketwired - July 24, 2017) -

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DREAM INDUSTRIAL REIT (TSX:DIR.UN) ("we" or "the Trust") today announced its expansion into the United States (or "U.S.") market with the acquisition of a 717,000 sf modern distribution facility in Nashville, TN for, approximately CAD$60 million. The Trust also announced progress with its asset manager, Dream Unlimited Corp. (TSX:DRM) (or "Dream") to actively leverage Dream's land bank, newly established industrial development group, existing partnerships and relationships to explore development opportunities and acquisitions that can generate above average returns and net asset value growth for the Trust both in Canada and the U.S.

Acquisition of Modern Distribution Facility in Nashville, Tennessee

Dream Industrial has entered into a purchase and sale agreement with Dream Office REIT (TSX:D.UN) to acquire a 717,000 sf single-tenant distribution centre located in Nashville, Tennessee, marking the Trust's first acquisition in the U.S. The asset was owned and managed by Dream Office REIT since 2012 and was identified as "non-core" as part of their strategic plan. Dream Industrial believes that this presents a unique opportunity to acquire a high quality asset with a strong covenant and long term lease in a non-competitive process at an attractive price.

As per the press release dated April 18, 2017, in addition to continuing to source opportunistic investments in Canada, the Trust is exploring opportunities to expand into new markets. We believe that the size and liquidity of the U.S. market will provide the Trust with more diverse opportunities to acquire high quality assets that provide for attractive returns. The U.S. currently has solid market fundamentals and robust economic growth, which is supportive of a healthy industrial property sector. The Nissan North American operations are headquartered in Nashville, Tennessee and the Trust will look for future opportunities to increase its exposure to both Nissan as a tenant and the Nashville market.

The Trust intends to leverage Dream's relationships and network in the U.S. to target high-quality properties that are newer generation, offer high operating functionality and can increase exposure to tenants with strong covenants. Target properties will be strategically located in close proximity to major markets and transportation nodes, be occupied by quality tenants with longer-term leases that provide built-in growth unless there is a market opportunity to increase in-place rents, or provide value-add opportunities from a re-leasing and/or development perspective.