Dream Industrial Real Estate Investment Trust and Dream Unlimited Corp. have formed a $1.5 billion joint venture with a leading global sovereign wealth fund. The joint venture will keep the development projects unlevered within the venture, with each party utilizing debt on their balance sheets to fund the land acquisition and construction costs.

Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. Dream Industrial REIT owns, manages and operates a portfolio of 239 industrial assets comprising approximately 43 million square feet of gross leasable area in key markets across Canada, Europe, and the U.S. Dream is a developer of office and residential assets in Toronto, owns assets in Canada and the U.S., and has an asset management business, inclusive of $15 billion of assets under management. The Joint Venture will target to buy $500 million of development sites in the Greater Toronto Area to build industrial assets.

“We are excited to work with a reputed global partner in building best-in-class assets in one of the strongest industrial markets in the world globally,” said Alexander Sannikov, COO of Dream Industrial REIT. “We believe that developments are an attractive way to add brand-new product at attractive economics to the REIT. We believe that this partnership will allow us to enhance our exposure to developments and allow us to improve the overall quality and value of the business quickly and safely.”