Dream accelerates the growth of its asset management platform with the acquisition of Chancerygate, a leading UK-based industrial property manager and developer
With more than 80 professionals and 27 million square feet of gross lettable space under management or under development in nine countries, the combined platform is one of Europe’s leading platforms for urban industrial real estate.
Dream Unlimited Corp. (“Dream“) (TSX: DRM) announced today that Dream and Dream Industrial Real Estate Investment Trust (“Dream Industrial REIT”) (TSX: DIR. UN) have entered into binding agreements to acquire Chancerygate Limited (“Chancerygate” or “CG”), a UK-based industrial real estate developer and manager with a 30-year track record in the multi-let industrial (“MLI”) segment. Chancerygate currently manages a diversified portfolio of income-producing real estate and development projects with a total value of £1.2 billion (C$2.2 billion).
As part of the transaction, Dream will acquire Chancerygate’s investment management and development platform. Dream Industrial REIT will acquire the property, which is wholly owned by Chancerygate, as well as the co-investment interests in the joint ventures managed by Chancerygate, for approximately £78 million (C$147 million) before deducting certain existing liabilities. In addition, Dream Industrial REIT expects to provide an additional £25 million ($47 million CAD) for the completion of the development projects wholly owned by Chancerygate. The transactions are expected to close in August 2026.
Transaction Highlights
One of Europe’s leading platforms for urban industrial real estate. Upon completion of the transaction, the combined dream platform will be one of the leading vertically integrated operators of urban industrial real estate in Europe, with approximately 27 million square feet of space under management or under development. Chancerygate’s specialization in the MLI segment complements Dream’s focus on urban industrial real estate with small and medium-sized rental units within its 74 million square feet of global industrial real estate platform. The transaction expands Dream’s presence in Europe. Chancerygate’s activities in the United Kingdom, Ireland, Spain and Portugal are highly complementary to Dream’s existing operations in the Netherlands and Germany. Dream’s European platform will include more than 80 professionals in offices in London, Manchester, Birmingham, Düsseldorf, Berlin, Amsterdam, Madrid, Lisbon and Dublin. Larger dimensions. Dream’s total assets under management globally are expected to exceed C$30 billion on a pro forma basis following the transaction. Dream’s European platform will account for more than C$6 billion worth of industrial and residential real estate under management. Combined companies’ strong track record in European asset management and world-class development expertise in the UK and Europe. Dream has been operating in Europe for more than 15 years and has completed transactions worth over 13 billion Canadian dollars. Chancerygate’s track record is highly complementary to Dream’s and includes an average realized internal return on equity (Levered IRR) of 27% across 52 development projects since 2007. New pan-European MLI joint venture for ongoing investments. Dream, Chancerygate and Dream Industrial REIT are in advanced negotiations to establish a new joint venture for ongoing investments with a leading global institutional investor. The joint venture is expected to pursue acquisition and development opportunities in the MLI segment across Europe and is targeting a gross asset value of approximately €500 million (C$800 million).
“This acquisition is an important step in further building a leading European industrial real estate platform at Dream. Chancerygate brings an exceptional team and gives us an immediate presence in London, the center of European capital flows. Together with our existing platform, we are well positioned to further grow our private capital partnerships business,” said Jamie Cooper, Co-President of Asset Management at Dream.
“With Chancerygate, Dream Industrial REIT is tapping into the multi-let industrial real estate market in the UK, a segment with attractive operational fundamentals, while gaining a fully built operating platform and established relationships with institutional investors. The transaction accelerates our European growth strategy and aligns with our goal of accretive growth through prudent capital allocation and vertically integrated operating structures,” said Alexander Sannikov, Managing Director of Dream Industrial REIT and Co-President of Asset Management at Dream.
“We are very excited to become part of Dream. Dream’s long-term investment philosophy as well as institutional capabilities fit very well with the platform we have built at Chancerygate. Over the past three decades, our team has built a reputation for managing and delivering high-quality properties for some of the world’s most sophisticated investors. By joining forces with Dream, we will gain access to a larger platform and more comprehensive resources and will be able to serve our partners even better as we enter the next phase of growth,” said Richard Bains, Managing Director of Chancerygate.
