CPP Investments, Dream Industrial REIT and Dream Asset Management Complete C$585.8 Million GTA Industrial Acquisition

Canada Pension Plan Investment Board (CPP Investments), Dream Unlimited Corp. (TSX: DRM) and Dream Industrial Real Estate Investment Trust (TSX: DIR.UN) announced Nov. 2, 2026, that they completed the acquisition of an industrial portfolio in the Greater Toronto Area (GTA) for C$585.8 million. The purchase was made through a joint venture formed in December 2025 that includes Dream Asset Management Corporation.

The portfolio comprises five newly developed mid- and large-bay logistics assets totaling 2.1 million square feet of gross leasable area. All dollar amounts in this report are in Canadian dollars.

Portfolio Details: Five Fully Leased GTA Logistics Assets

The five properties were built between 2020 and 2024 and are fully leased to national and international companies. The assets feature 36- to 40-foot clear heights, ample trailer parking and a loading ratio of one door per 8,000 square feet, which the parties said positions them to accommodate both mid- and large-bay occupiers.

Four of the assets are in Oshawa, Ont., at 883 Thornton Road South, 1,121 Thornton Road South, 1,147 Thornton Road South and 1,565 Thornton Road North. The fifth is at 100 Ace Drive in Brampton, Ont.

At the reported purchase price, the portfolio works out to approximately C$279 per square foot. The 2.1 million square feet across five assets implies an average of roughly 420,000 square feet per property, an arithmetic average rather than a reported size for any individual building.

The parties said the portfolio generates stable in-place income and offers the opportunity to drive value by executing on embedded mark-to-market rental growth potential.

CPP Investments Holds 90% of the Joint Venture

The portfolio was acquired through the joint venture that CPP Investments, Dream Asset Management Corporation and Dream Industrial REIT formed to invest in industrial properties in major Canadian markets. CPP Investments holds a 90% stake in the venture. Dream Industrial REIT's share of this acquisition was C$58.6 million.

Including this transaction, the joint venture has deployed more than C$1.4 billion of capital in Canadian industrial properties, nearly half of its C$3 billion investment target.

"This acquisition builds on our conviction in the long-term fundamentals of Canada's industrial sector and adds a high-quality portfolio of well-located logistics assets to the joint venture," said Sophie van Oosterom, Managing Director, Head of Real Estate at CPP Investments. "Together with Dream, we continue to identify attractive opportunities to scale the portfolio and generate long-term value for the CPP Fund."

Bruce Traversy, Chief Investment Officer of Dream Industrial REIT, said the transaction aligns with the REIT's strategy of investing in high-quality industrial real estate that offers stable cash flows and opportunities for value creation through active asset management. "We see a strong pipeline of further opportunities across Canada and look forward to continuing to build our partnership with CPP Investments," Traversy said.

The Platforms Behind the Deal

CPP Investments manages the Canada Pension Plan Fund on behalf of more than 22 million contributors and beneficiaries. The Fund totaled C$863.6 billion at June 30, 2026. The organization is headquartered in Toronto.

Dream Asset Management Corporation is the institutional asset management arm of Dream, providing investment and asset management services to its publicly listed trusts and institutional partners. At June 30, 2026, Dream managed C$28 billion of assets across listed entities, private funds and private partnerships in North America and Europe.

Dream Industrial REIT had an interest in and managed 348 industrial assets (565 buildings) totaling approximately 75.7 million square feet of gross leasable area across Canada, Europe and the U.S. at the same date.

GTA Industrial Market Conditions

The acquisition comes as the GTA industrial market shows continued demand alongside moderating rent growth. CBRE recorded 2.0 million square feet of net absorption in the third quarter of 2026, extending positive absorption to five consecutive quarters. CBRE reported a 5.0% availability rate, unchanged for the fourth straight quarter, and forecast 8.4 million square feet of new supply for 2026.

Cresa reported GTA vacancy rising from 3.8% to 4.0% in the third quarter, with availability at 5.5% and average asking net rent at C$16.15 per square foot. Avison Young data showed an average asking net rent of C$16.06 per square foot, down 4.8% year over year, with vacancy of 2.6% and quarterly absorption of 2.2 million square feet. The variation among vacancy figures reflects differences in methodology, geography and market definitions.

Avison Young also reported 5.9 million square feet under construction across 28 buildings, down from 10.8 million square feet in the prior quarter. Altus reported that nine industrial projects delivered nearly 2.5 million square feet in the third quarter, with 85% of that space uncommitted at quarter-end.

Outlook

The parties said they see a pipeline of further acquisition opportunities across Canada, with the joint venture still having roughly half of its C$3 billion target to deploy. The announcement noted there can be no assurance that the remaining capital will be deployed, that further acquisitions will be identified or completed on acceptable terms, or that the anticipated benefits of the acquisition and joint venture will be realized.

With asking rents under pressure in parts of the market and new supply continuing to be delivered, the investment thesis for the portfolio centers on in-place income from fully leased modern buildings and the potential for rents to rise toward market levels over time, as outlined by the parties.

Sources

• CPP Investments: CPP Investments and Dream Complete $585.8 Million Acquisition of GTA Industrial Portfolio