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Dream Residential REIT confirmed the completion of its acquisition by an affiliate of Morgan Properties in an all-cash deal valued at approximately USD 354 million. Unitholders will receive USD 10.80 per unit, which includes a USD 3.40 special distribution and a USD 7.40 redemption amount. Following the closing, the REIT's units will be delisted from the Toronto Stock Exchange, and the trust will apply to cease reporting under Canadian securities laws. The transaction also ends its external asset-management agreements with subsidiaries of Dream Unlimited Corp. and Pauls Corp., marking a full ownership transfer.
Dream Residential REIT announced the completion of its acquisition by an affiliate of Morgan Properties in a cash transaction valued at about USD 354 million. The trust stated that its unitholders and Class B unitholders of DRR Holdings LLC will receive USD 10.80 per unit, which consists of a USD 3.40 special distribution and a USD 7.40 redemption amount. This payment has been structured in line with the plan of arrangement approved earlier in the year. Advertisement
With the transaction now closed, the REIT's units are scheduled to be removed from the Toronto Stock Exchange at the close of trading around the middle of the week. The trust will also begin the process of applying to cease being a reporting issuer under applicable Canadian securities regulations. Once this step is completed, the public-market obligations of the REIT will formally end.
The acquisition results in a full ownership transfer, with Morgan Properties, through its wholly owned subsidiary, now holding 100 percent of the issued and outstanding units of Dream Residential REIT. As part of the closing, the trust has terminated its external asset-management and property-management agreements with DRR Asset Management LP, a subsidiary of Dream Unlimited Corp., and Pauls Realty Services LLC, a subsidiary of Pauls Corp.
Earlier in the year, the REIT had announced that it entered into an arrangement agreement with Morgan Properties, which later received approval from the Ontario Superior Court of Justice (Commercial List). Prior to the closing, unitholders had been informed that the transaction represented a meaningful premium to the REIT's trading price at the time of announcement.
Dream Residential REIT, which owns garden-style multifamily properties primarily in the U.S. Sunbelt and Midwest, had noted that the deal would shift its portfolio into the larger operating scale of Morgan Properties. Morgan Properties already manages a substantial multifamily platform across several U.S. states, and the acquisition integrates these assets into its expanding portfolio.
Source Reuters
5th Jun, 2025
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