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Dream Unlimited gains control of Dream Alternatives, unveils recent investments

Dream Unlimited Corp. said it is now deemed in control of Dream Hard Asset Alternatives Trust, or Dream Alternatives, one of its publicly listed funds along with Dream Office REIT and Dream Global REIT, after its exposure to variable returns from its involvement with the fund increased substantially through units held in the entity and certain contractual agreements.

Dream Unlimited will now consolidate Dream Alternatives' financial results, with effect from Jan. 1.

The Canadian real estate company said in its 2017 earnings release that it intends to increase its stake in both Dream Office and Dream Alternatives, subject to market conditions. As at Feb. 23, Dream Unlimited had a 15% stake in Dream Office, at a fair value of C$252.4 million, and a 14% stake in Dream Alternatives, at a fair value of C$64.6 million.

In the fourth quarter of 2017, Dream Unlimited acquired a 6.25% interest in the two-tower Frank Gehry residential project in Toronto for C$4.8 million. Dream Alternatives owns an 18.75% interest in the development, which is also slated to feature 80,000 square feet of luxury retail space, a possible hotel component and an art gallery. The project secured up to C$85.0 million of nonrevolving term facilities, or C$5.3 million at Dream Unlimited's share, along with C$20.0 million worth of letters of credit.

During the same period, the company restructured a partnership governing the 37-acre Zibi development in Ottawa and Gatineau, Quebec, that comprises over 2,000 residential units and more than 1 million square feet of commercial space. Dream Unlimited acquired a 40% interest in the project and an 80% interest in the ultimate general partner. Dream Alternatives holds a 40% interest in the project, with Windmill Green Properties LP owning the remaining 20%.

The company secured borrowings for the project of up to C$125.9 million, along with C$22.0 million worth of letters of credit during the quarter.

Subsequent to 2017-end, Dream Unlimited secured a C$53.0 million facility, or C$26.5 million at the company's share, for the construction of the Canary Commons development in Toronto.

The company committed to acquire a further 158 acres north of its Coopertown development, a master-planned community in the city of Regina in Saskatchewan. Construction on the project is expected to start in the next two years.

Dream Unlimited also increased its nonrevolving term facility to C$225.0 million from C$175.0 million and extended its maturity date to Feb. 28, 2021. The additional net proceeds will be used to repay outstanding amounts under the company's operating line.