Dream Hard Asset Alternatives Trust Disposes of Its Investment in Dream Office REIT (TSX: D.UN) to Dream Unlimited Corp. (TSX: DRM), Realizing an Attractive Holding Period Total Return
TORONTO, June 28, 2018 (GLOBE NEWSWIRE) -- DREAM ALTERNATIVES TRUST (TSX:DRA.UN) ("Dream Alternatives", "we" or the "Trust") today announced that it has successfully disposed of its investment in Dream Office REIT (TSX:D.UN) to Dream Asset Management Corporation, a subsidiary of Dream Unlimited Corp. (TSX:DRM) for total consideration of $59.5 million, by way of a private market transaction. The units were priced at the five day volume weighted average price (VWAP) ending June 27, 2018, of approximately $23.61. The Trust originally purchased the 2,520,147 Dream Office units on the open market between August and October, 2017 for a total cost of $52.6 million. Including distributions received to date, the Trust has generated a total return of $8.8 million, or 17% on its gross investment (approximate 30% total return on its net equity investment).
The units were originally purchased by the Trust using a portion of the net proceeds from the sale of non-core properties co-owned with Dream Office REIT. Given the gains and returns realized to date, the Trust believes it was an opportune time to dispose of its investment in Dream Office REIT. The proceeds from the sale will add to the general liquidity of the Trust and provide Dream Alternatives with flexibility to pursue various investment opportunities and/or repurchase units under its active normal course issuer bid, in order to continue to generate net asset value per unit growth to its unitholders.
About Dream Alternatives Trust
Dream Alternatives provides an opportunity for unitholders to invest in hard asset alternative investments, real estate development, real estate lending, real estate, and renewable power managed by an experienced team with a successful track record in these areas. The objectives of the Trust are to build and maintain a growth-oriented portfolio, provide predictable cash distributions to unitholders on a tax efficient basis, and grow and reposition the portfolio to increase NAV per unit over time. For more information, please visit: www.dreamalternatives.ca
This press release may contain forward-looking information within the meaning of applicable securities legislation, including statements relating to the use of the proceeds from the sale of our investment in Dream Office REIT. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to: general and local economic and business conditions including foreign exchange rates, employment levels, mortgage and interest rates and regulations, regulatory risks, environmental risks, consumer confidence, the financial condition of tenants and borrowers, local real estate conditions, adverse weather conditions and variability in wind conditions and solar irradiation, reliance on key clients, partners and personnel, the uncertainties of acquisitions and new projects, inflation and competition. All forward-looking information in this press release speaks as of June 28, 2018. The Trust does not undertake to update any such forward looking information whether as a result of new information, future events or otherwise. Additional information about these assumptions and risks and uncertainties is disclosed in filings with securities regulators filed on SEDAR (www.sedar.com). These filings are also available at the Trust’s website atwww.dreamalternatives.ca
For further information, please contact:
|Michael J. Cooper||Pauline Alimchandani||Kim Lefever|
|Portfolio Manager||Chief Financial Officer||Investor Relations|
|(416) 365-5145||(416) 365-5992||(416) 365-6339|
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