The company, whose shares trade in Toronto and Frankfurt, was the first Canadian REIT to invest internationally following an IPO in August 2011. Its investments started in Germany, which accounted for 73% of its EUR 3.1 billion portfolio at the end of March, with properties in all of the ‘Big Seven Cities’ as well as smaller markets. The balance of its 257-asset portfolio is mainly in the Netherlands, with one property in each of Brussels and Vienna.
Dream Global acquired the 24,000 m2 Löwenkontor building in April 2013 after its local team identified the potential for the Berlin-Mitte district as rising occupier demand met a shortage of available stock. The area has excellent public transport connections, first-class shopping and is home to many of the city’s major tourist sights, making it a popular business location.
In the past three years, Dream Global’s on-the-ground team has leveraged its local network to scale up the strategy for Berlin-Mitte, acquiring another two properties, Zimmer 55 and the neighbouring M22 building, both near Checkpoint Charlie. The proximity of the assets has brought operational efficiencies.
Berlin’s market dynamics and active asset management offer Dream Global the potential to capture the city-wide surge in rents when several leases renew at Löwenkontor in the coming years. Rental growth and investor demand have lifted real estate prices substantially. Löwenkontor appreciated more than three-fold at the end of 2017 from its acquisition price, which at the time represented a net initial yield of around 7.0%.