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StocksMedium•3 November 2026•
4 min read

Dream Alliance Acquires Toronto Industrial Portfolio for C$585.8 Million

Key Facts

1The alliance completed the acquisition of an industrial portfolio in the Greater Toronto Area for C$585.8 million.
2The portfolio comprises 5 logistics assets with a leasable area of 2.1 million square feet and is fully leased.
3CPP Investments owns a 90% stake, and investment in Canadian industrial properties exceeded C$1.4 billion, against a target of C$3 billion.
4Net operating income for Canadian same-property assets rose 12.3% year over year in the fourth quarter of 2025, and in-place base rents increased 11.5% in the year ended December 31, 2025.

CPP Investments, Dream Unlimited and Dream Industrial REIT said on November 2 that they had completed the acquisition of an industrial property portfolio in the Greater Toronto Area for C$585.8 million through their joint venture, formed in December 2025. The portfolio comprises 5 modern logistics assets with a total leasable area of 2.1 million square feet and is fully leased, according to the companies’ statement. The assets include medium- and large-format buildings, placing the deal in Canada’s logistics sector. The companies said the portfolio is leased to national and international businesses and generates stable in-place income. Existing leases, the statement said, offer an opportunity to increase value as rents grow to market levels.

The properties were built between 2020 and 2024 and have clear heights ranging from 36 to 40 feet, according to the statement. They also have one loading door for every 8,000 square feet, an operating specification the companies included among the asset details. The portfolio thus combines recent construction with medium- and large-scale logistics space. The announcement did not say the deal was driven by strong market demand or reflected a broader trend in institutional interest. The companies cited only the portfolio’s characteristics, its existing income and the potential for rent growth.

The joint venture comprises CPP Investments, Dream Asset Management Corporation and Dream Industrial REIT. The parties formed it in 2025 to invest in industrial properties in major Canadian markets. CPP Investments owns a 90% stake in the venture. Following the deal, the venture’s invested capital in Canadian industrial properties exceeded C$1.4 billion. The companies said that figure is close to half of a C$3 billion investment target. The latest acquisition advances the venture toward that target, with a substantial portion still uninvested, according to the disclosed figures.

The deal follows the joint venture’s agreement to buy an initial portfolio from Dream Industrial REIT comprising 11 industrial assets and 27 buildings, spanning 3.6 million square feet, for C$805 million. In February 2026, the first tranche of that portfolio, comprising 6 assets and 22 buildings, closed with net proceeds of C$375 million. These transactions provide context for the joint venture’s acquisition of Canadian industrial assets. In its 2025 annual report, Dream Industrial REIT said net operating income for its Canadian same-property portfolio rose 12.3% year over year in the fourth quarter of 2025. The portfolio’s in-place base rents in Canada also increased 11.5% in the year ended December 31, 2025.

Dream Industrial REIT said it signed leases for more than 2.1 million square feet between October 1, 2025, and January 31, 2026, at a weighted average rental spread of 14.3% over prior or expiring rents. The company also said the average contractual annual rent growth embedded in its wholly owned Canadian portfolio is about 3%, according to its 2025 report. These figures relate to the company’s broader Canadian portfolio and earlier periods; they are not performance metrics disclosed for the 5 assets in the current deal. Sophie van Oosterom, managing director and head of real estate at CPP Investments, said the partnership with Dream continues to identify opportunities to expand the portfolio and deliver long-term value for the CPP Fund. She added that the acquisition adds logistics assets to the joint venture.

Bruce Traversy, chief investment officer of Dream Industrial REIT, said the company sees “a strong pipeline of additional opportunities across Canada.” The statement did not specify when another deal might occur or provide details about those opportunities. The venture’s stated aim remains investing in industrial properties in major Canadian markets, while invested capital exceeded C$1.4 billion after this deal, compared with a target of C$3 billion. The companies said the new portfolio is fully leased and generates stable in-place income. They also pointed to the potential for rents to grow to market levels, without disclosing figures specific to these assets or a timeline for achieving that growth.