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Dream Global Real Estate Investment Trust Tr Unit DUNDF

Dream Global Real Estate Investment Trust is a real estate investment trust primarily engaged in the acquisition, ownership, and operation of properties in Europe. The company's portfolio is mainly composed of office and mixed-use spaces. Dream Global REIT's German office properties represent the majority of its holdings in terms of total square footage. The firm derives nearly all of its revenue in the form of rental income. The urban German markets of Hamburg, Dusseldorf, Berlin, and Cologne g


GREY:DUNDF - Post by User

Post by maypeterson Jun 05, 2018 5:53pm
381 Views
Post# 28128879

$175 million bought deal

$175 million bought deal
Source: Dream Global REIT
 
 

This news release contains forwardlooking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this news release.

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

TORONTO, June 05, 2018 (GLOBE NEWSWIRE) -- DREAM GLOBAL REIT (TSX:DRG.UN) (FRA:DRG) (“Dream Global REIT” or the “Trust”) announced today that it has entered into an agreement to sell 12,000,000 units of the Trust (the “Units”) on a bought deal basis at a price of $14.60 per Unit to a syndicate of underwriters led by TD Securities Inc. (the “Underwriters”) for gross proceeds of $175,200,000 (the “Offering”). In addition, Dream Global REIT has granted the Underwriters an over-allotment option, exercisable for a period of 30 days following closing of the Offering, to purchase up to an additional 1,800,000 Units which, if exercised in full, would increase the gross proceeds of the Offering to $201,480,000. Closing of the Offering is expected to occur on or about June 26, 2018. The Offering is subject to certain customary conditions, including the approval of the Toronto Stock Exchange.

The Trust intends to use the net proceeds from the Offering to fund acquisitions and for general trust purposes. The Trust is currently in exclusive negotiations with vendors on five potential acquisitions of high quality office and industrial properties located in its target markets in Germany and the Netherlands. The combined expected purchase price of these properties would exceed €170 million ($250 million).

The combined GLA of these five properties is 935,000 square feet. Four of these properties are located in strong German markets and one property is located in a G5 Dutch market. One of the German properties will be vacant at closing in an excellent market with strong leasing velocity. We expect that when the building is fully leased, substantial value will be created. The balance of the properties in exclusivity are on average 97% occupied with a staggered weighted average lease term (WALT) of 4.5 years.

“We are pleased that we were able to secure exclusivity on these high quality opportunities in this competitive market environment. With a mix of core, core+ and value-add properties, in very strong markets, these assets achieve our objectives of enhancing cash flow, growing net operating income, and increasing the value of our properties,” said Jane Gavan, President & CEO of Dream Global REIT. “We intend to partially finance these acquisitions with debt below our current leverage level and to add to our pool of unencumbered assets. This will allow us to reduce the overall leverage for Dream Global REIT and increase our flexibility to pursue additional acquisition opportunities in the future.”

The Units will be offered by way of a short form prospectus to be filed on or about June 18, 2018 with the securities commissions and other similar regulatory authorities in each of the provinces of Canada.

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction in which such offer or solicitation is unlawful. This news release is not an offer of securities for sale in the United States. The securities being offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and accordingly are not being offered for sale and may not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except pursuant to an exemption from the registration requirements of that Act.

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