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Spring 2015
The
Bulletin
Issue #: 002
Highlights of 2014 & 2015
At Dream, we have always been focused on identifying and executing on unique opportunities for the
benefit of the business and our shareholders and continued to do so throughout 2014 and the first
quarter of 2015. The examples below are just a few of our transactions during the year and highlight
our strive to generate additional value by being creative, unique and forward-looking.
Breaking Ground - Dream’s Inaugural
Greenfield Retail Development
South Kensington - Dream’s First
Condo Residence in Saskatoon
As a developer, we strive to capture additional value through commercial
developments and in 2013, we hired an experienced team to develop retail
projects on land owned by Dream. We are executing on our strategy to intensify development on our own and officially broke ground on phase one
of Tamarack, our first greenfield retail development located in Edmonton
in June 2014. The first phase of this 180,000 square foot multi-phase development is expected to be completed by mid-2015 and Goodlife Fitness
has already moved in. This is just the beginning as we plan to develop on
approximately 400 acres of our Western Canadian retail lands ourselves.
Dream specializes in creating unique, forward-thinking
communities that integrate retail and compelling public
spaces with a wealth of conveniences for its residents.
Dream’s master-plan for South Kensington includes our first
condominium residence in Saskatoon. The South Kensington
site is a collaborative effort for Dream, bringing together
expertise from all our divisions to build an exceptionally
planned community and influence every component of this
neighbourhood.
South Korean Pension Fund
Joint Venture
Dream Global REIT entered into a long-term
joint venture with Public Official Benefits Association (“POBA”), a South Korean pension fund.
To date, we sold a 50% interest in approximately
CAD $650 million of assets to our JV partner.
This transaction allowed us to leverage our operating platform in Germany and redeploy the proceeds into highly accretive opportunities, such as
Cologne Tower, Cologne’s tallest office building
and Dream Global’s largest asset.
Unlocking Long-term Real Estate Value
Dream and Canadian Pacific (“CP”) recently announced the formation of a joint venture
called DREAM Van Horne Properties, created to generate long-term shareholder value
from CP’s surplus real estate poised for development by the joint venture. There is
unlimited potential to develop land that has benefitted from the growth of the cities they
are located in – including Chicago, Toronto, Edmonton and Montreal. The partnership
with CP is a testament to the value of Dream’s diversified real estate platform and track
record for creating value. We look forward to working with CP for many years.
In the community
DREAM INDUSTRIAL REIT
APPOINTS THEIR NEW CEO
AND CFO
Dream Industrial REIT started 2015
with a new executive team in place with
the appointment of Brent Chapman as
President and Chief Executive Officer and
Lenis Quan as Chief Financial Officer.
Brent replaced Randy Cameron, who
retired as President and CEO on October
31, 2014. Brent has over 28 years of
experience across all facets of the real
estate industry and comes to Dream
Industrial REIT from Guardian Capital
Real Estate, where he was Managing
Director. Prior to being with Guardian,
Brent was President and CEO of GPM
Investment Management and a director
of Integrated Asset Management, the
parent company of GPM. His career
includes holding various senior positions
in asset management, leasing, property
management, acquisitions, financing and
development with Oxford Properties and
Talisker Corporation.
Dream Sponsors The
Shoebox Project
Lenis is a senior finance professional with
over fifteen years of executive experience.
She was most recently the Chief Financial
Officer of Gazit America, a publicly traded
real estate investment company which
was privatized. Prior to joining Gazit
America, Lenis worked at Brookfield
Asset Management for approximately ten
years in a number of progressive executive
finance positions. Lenis is a Chartered
Professional Accountant and started her
professional career with Deloitte.
In 2014, Dream became the first National
Corporate Sponsor of the Shoebox Project for Shelters, a national organization
that brightens the lives of women living
in shelters by providing them with gifts
during the holidays. In the first of Dream’s
three-year partnership with the Shoebox
Project, Dream employees across the
country contributed hundreds of shoeboxes filled with gifts: boxes were collected in Saskatoon, Regina, Calgary, Mississauga, Toronto and Dartmouth, and were
often the result of colleagues making boxes together as teams. The drives in Regina
and Saskatoon were the cities’ first, and
Dream employees were proud to make
and collect over 200 boxes to launch the
Saskatchewan chapters.
Brent Chapman
CEO
Lenis Quan
CFO
Dream Executives Recognized
Dream Executives were recently recognized for their excellence and professional achievements.
Jane Gavan, CEO
of Dream Office REIT
& Dream Global REIT
Recognized as one
of Canada’s Top
100 Women by the
Women’s Executive
Network.
Recipient of
prestigious
German
immobilienmanager. AWARD.
The Top 100
Awards celebrates
the professional
achievements of
female leaders across
the country in the
private, public, and
not-for-profit sectors.
The Awards are given
to remarkable women
in nine different
categories.
This award is an
endorsement of
Dream’s approach
to running each of
its businesses locally
with the best teams
on the ground, and
Jane’s exemplary,
innovative and
courageous
leadership skills.
http://bit.ly/1cXu8R4
http://goo.gl/PvXO9a
Michael Cooper, CEO of
Dream Unlimited and Portfolio
Manager for Dream Alternatives
Trust was recognized as the
Ernst and Young Entrepreneur
of the Year for Real Estate.
Pauline Alimchandani, CFO
of Dream Unlimited Was
Selected as one of Real
Estate Forum magazine’s
“50 Under 40” in its
October 2014 issue.
EY Entrepreneur of The Year is the
world’s most prestigious business
award recognizing entrepreneurs
who are building and leading
successful, growing and dynamic
businesses through regional, national
and global awards programs in more
than 145 cities in more than 60
countries.
The editors of Real Estate Forum
gathered information on some
of the best and brightest young
professionals in commercial real
estate today. More than 500
nominees were judged based
on their talent and success and
Pauline was the only Canadian
and one of the youngest selected.
http://bit.ly/1rDV0LS
http://bit.ly/1urOEpO
In the news
DOMTAR LANDS
REDEVELOPMENT – A
UNIQUE OPPORTUNITY TO
CREATE A WORLD-CLASS
SUSTAINABLE COMMUNITY
In 2014, Dream was able to seize a very
unique opportunity when it partnered up
with Windmill Development Group to take
part in transforming an important location
in Canada’s National Capital Region. The
37-acre site referred to as the Domtar Lands
is unique in many ways – it is located in both
the City of Ottawa and the City of Gatineau
and consists of two islands and a portion of
the Gatineau River bank. Historically, the
lands had been reserved for industrial uses.
That changed and last October, Ottawa
City Council approved the Official Plan and
Zoning By-law amendment application to
establish the lands to be developed into a
unique and dynamic mixed-use community
- an opportunity to create a world-class
sustainable community in what is considered
to be one of the largest redevelopments in
the National Capital Region.
The result of this zoning will allow us to
develop over 1.3 million square feet of
density on the Ottawa Lands. A similar
zoning amendment has been approved by
the City of Gatineau, which will increase
the total density to approximately 3.6
million square feet of mixed use, office,
residential and hotel space, including
200,000 square feet of existing brick and
beam structures. Whenever possible, existing
heritage structures will be integrated. The
development’s overall time horizon is about
12 years, with the first residential buildings
to be marketed this year. Together with
our partner, we have also been actively
pursuing commercial and retail tenants
and the responses continue to surpass our
expectations. We are extremely proud to be
part of such an outstanding opportunity to
transform the “landscape” in our Nation’s
capital.
The community was recently name Zibi,
which means ‘river’ in the Algonquin
language. Read more here: http://goo.gl/
AcbqDg
Nov 2014 - Behind the Scenes
Dream Global
In this print interview with the European
Public Real Estate Association, (EPRA) Jane
Gavan, CEO of Dream Global REIT, reflects
on what it takes to be successful as a Canadian
based company operating in Europe.
Read more here: http://bit.ly/1yrnFqA
Will Pan Am village pave the
way for a 2028 Olympic bid?
This article in the Globe & Mail features
Jason Lester of Dream and other members
of the Dundee Kilmer Developments LP
reflecting on the nearly completed, on-time,
on-budget Pan Am Games athletes’ village
– and how this could bolster Toronto’s
aspirations for a possible 2028 Olympic bid.
Read more here: http://goo.gl/qyT7EF
Dream Global
REIT Property
Tour - The Video
Seeing is believing - Dream Global REIT
owns some of Germany’s finest buildings in
the big cities. Jane Gavan, CEO of Dream
Global REIT, invites you to view a virtual
tour of our properties in Germany, including our recent acquisitions, Officium and
Cologne Tower.
Watch it here: www.dream.ca/global
Upcoming AGMs
Name
Earnings Release Date
AGM Date
AGM Time & Location
Dream Industrial REIT
[TSX-DIR.UN]
May 5, 2015
May 5, 2015
4pm at Dream’s Corporate Offices
30 Adelaide St. E., Toronto, 3rd Floor
Dream Global REIT
[TSX-DRG.UN]
May 6, 2015
May 6, 2015
4pm at Dream’s Corporate Offices
30 Adelaide St. E., Toronto, 3rd Floor
Dream Office REIT
[TSX-D.UN]
May 7, 2015
May 7, 2015
4pm at Dream’s Corporate Offices
30 Adelaide St. E., Toronto, 3rd Floor
Dream Unlimited
[TSX-DRM]
May 11, 2015
May 11, 2015
4pm at Dream’s Corporate Offices
30 Adelaide St. E., Toronto, 3rd Floor
Dream Alternatives Trust
[TSX-DRA.UN]
May 12, 2015
May 12, 2015
4pm at Dream’s Corporate Offices
30 Adelaide St. E., Toronto, 3rd Floor
Focus:
Land development, housing and condominium development, retail development, asset management for our
TSX-listed fund investments in Canadian hard assets,
commerical property ownership and renewable energy
infrastructure.
www.dream.ca
info@dream.ca
Year commenced:
Equity at inception:
Current Mkt Cap:
IRR over last 11 years:
Assets under
Management:
1996
$0.5 Mln
$1.1 Bln
39%1
14.6 Bln2
Focus: Canadian Office
Year Commenced: 2003
Mkt Cap at Inception: $320 Mln
Focus: German Office
Year Commenced: 2011
Mkt Cap at Inception: $520 Mln
Focus: Canadian Industrial
Year Commenced: 2012
Mkt Cap at Inception: $340 Mln
Focus: Hard Assets
Year Commenced: 2014
Initial Book Value: ~$725 Mln
Current Mkt Cap:$3.0 Bln3
Total Assets:
$7.6 Bln
Yield:
8.1% 4
Tax Treatment: 73% return of
capital estimated for 2014
Current Mkt Cap:$1.1 Bln3
Total Assets:
$2.7 Bln
Yield:
7.9% 4
Tax Treatment: 50% return of
capital estimated for 2014
Current Mkt Cap:$694 Mln3
Total Assets:
$1.7 Bln
Yield:
7.7% 4
Tax Treatment: 77% return of
capital estimated for 2014
Yield:
6.0% 4
Tax Treatment: 85% return of
capital estimated for 2014
Canada’s largest office REIT
First Canadian REIT to invest exclusively outside of Canada.
Largest pure play Canadian Industrial
REIT.
www.dream.ca/office
officeinfo@dream.ca
www.dream.ca/global
globalinfo@dream.ca
www.dream.ca/industrial
industrialinfo@dream.ca
Provides investors the opportunity to
access hard asset alternative investments such as real estate, real estate
lending, and infrastructure including
renewable power.
www.dream.ca/alternatives
alternativesinfo@dream.ca
Dream Unlimited Corp.
(TSX: DRM)
Dream’s Operating Businesses
Asset Management & Management Services / Publicly Listed Funds
Dream Office REIT
(TSX: D.UN)
Dream Global REIT
(TSX: DRG.UN)
Dream Industrial REIT
(TSX: DIR.UN)
Dream Alternatives Trust
(TSX: DRA.UN)
Land Development
Housing &
Urban Development
Retail
Development
$14.6 Bln AUM
IRR (Internal Rate of Return) represents the discount rate of annual net cash paid out to shareholders and the equity value (including minority interest) as at December 31, 2014 over the initial investment
in 2003. 2Assets under management (“AUM”) is the respective carrying value of total assets managed by the company on behalf of its clients, investors or partners. Assets under management is a measure
of success against the competition and consists of growth or decline due to asset appreciation, changes in fair market value, acquisitions and dispositions, operations gains and losses, and inflows and
outflows of capital.
3
Based on TSX closing price as of April 10, 2015 and units or shares outstanding as at April 10, 2015.
4
Yield is calculated based on the closing price of units on the TSX as of April 10, 2015 and current distribution rates. Unlike fixed income securities, there is no obligation on the REIT or the trust to distribute
to unitholders any fixed amount, and reductions in, or suspensions of, cash distributions may occur that would reduce the yield based on market price.
1
30 Adelaide Street East, Suite 1600
|
Toronto, Ontario, M5C 3H1
|
416.365.3535