GIC, the sovereign wealth fund of Singapore, and Canadian Dream Industrial REIT (DIR) will buy Canada’s Summit Industrial Income REIT for about USD 3.30 billion (C$4.46 billion).

For this, DIR and GIC will form a joint venture (JV), with GIC owning 90 per cent and DIR owning the rest. The said deal builds on GIC’s recent real estate purchases worldwide. It will give GIC access to the Canadian Industrial space. Notably, GIC and a private equity company bought US commercial REIT Store Capital Corp for about USD 14 billion.

Reportedly, Summit’s unitholders will get C$23.50 per unit in cash, representing a 31.1 per cent premium to their close on Friday. The deal is valued at C$4.46 billion. Including the debt, the deal is valued at C$5.9 billion.

DIR stated that the deal is likely to double the scale of its Canadian industrial portfolio under management. As of June, Summit’s portfolio totalled 160 properties aggregating 21.6 million square feet.