US Markets

Dream Global REIT to be bought by Blackstone funds in $4.7 bln deal

Credit: REUTERS/BRENDAN MCDERMID

Dream Global Real Estate Investment Trust said funds managed by Blackstone Group Inc would buy the Canadian firm in a C$6.2 billion ($4.69 billion) deal.

Blackstone to pay C$16.79 cash per Dream Global unit

Represents premium of about 18.5% to Dream Global's Friday close

Adds details from company statement, deal premium

Sept 15 (Reuters) - Dream Global Real Estate Investment Trust DRG_u.TO said funds managed by Blackstone Group Inc BX.N would buy the Canadian firm in a C$6.2 billion ($4.69 billion) deal.

Blackstone will pay C$16.79 cash per Dream Global unit to acquire all of the office and industrial property manager's subsidiaries and assets, the Toronto-listed firm said.

That represents a premium of about 18.5% to Dream Global's Friday close.

The firm, which went public in 2011, has assets in Western European countries, including Germany, Netherlands, and Austria.

"This transaction is an exciting opportunity for Blackstone to expand its existing office and logistics portfolios in some of the largest and most important markets in the region," the head of Blackstone Real Estate Europe, James Seppala, was quoted as saying in the statement.

The deal needs at least 66.67% approval from Dream Global's unitholders. Its board of trustees unanimously approved the deal and recommended the unitholders to vote in favour of it.

TD Securities is serving Dream Global as its financial adviser, while Osler, Hoskin & Harcourt LLP and Greenberg Traurig Germany LLP are its legal counsel on the deal.

Blackstone's financial advisers are RBC Capital Markets, BNP Paribas, and Deutsche Bank Securities Inc, while Davies Ward Phillips & Vineberg LLP and Simpson Thacher & Bartlett LLP are acting as its legal counsel.

($1 = 1.3220 Canadian dollars)

(Reporting by Ismail Shakil in Bengaluru; Editing by Himani Sarkar)

((ismail.shakil@tr.com; +91 8861175297; Tweet @ismail___s;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More