Zzen Group Acquires Two Vaughan Industrial Buildings for $115M

CPP Investments and Dream Industrial REIT have sold two industrial buildings in Vaughan, north of Toronto, to Zzen Group of Companies Limited for $115 million. The properties, located at 750 Creditstone Rd. and 121 Pippin Rd., were part of a joint venture formed in December 2025 between CPP, Dream Industrial, and Dream Asset Management Corp. This transaction reflects the joint venture’s focus on delivering strong returns, with Dream Industrial REIT chief investment officer Bruce Traversy noting, “We’re focused on delivering returns on the assets and CPP is a great partner.“

The joint venture was seeded with an $805-million portfolio of 12 Dream Industrial properties, totaling approximately 3.6 million square feet of space across the Greater Toronto Area, Montreal, Calgary, and London, Ontario. CPP is a 90 per cent owner of the portfolio, held by what’s legally known as Dream DCI (Ontario) Inc., while Dream Industrial holds the remaining 10 per cent stake. Traversy emphasized that Dream DCI aims for value-added returns through active asset management, stating, “We always try to be active asset managers, and we’re looking for opportunities to buy and sell creatively.“

Vaughan Properties Attract Strong Demand

The two Vaughan buildings, built in 1999, span a combined 346,035 square feet on 17.6 acres of land. Bruce Traversy highlighted Vaughan as a high-demand location for both tenants and investors, adding, “Land in Vaughan is a valuable commodity.” One of the buildings also features rail access, which significantly enhances its appeal to specific tenants.

Westlake Royal Building Products fully occupies the Creditstone Road building, while Concord Compounding Limited occupies the Pippin Road facility. Traversy described the sale as a full-value offer from a strong counter-party. Vaughan-based Zzen Group, a privately owned company, owns a portfolio of developed and undeveloped land in the area, further solidifying its position in the market.

The industrial real estate sector remains robust, with Traversy noting strong absorption and good operating fundamentals. Dream Industrial’s global portfolio includes 1,600 tenants, with 1,400 in Canada alone. The company’s in-house management of property, leasing, and development provides a competitive advantage, as Traversy explained, “We do property management, leasing, development, and everything in-house, so I think that’s a competitive advantage for us.“

Strategic Acquisitions and Expansions

Earlier this quarter, Dream DCI acquired a 227,000-square-foot building in Calgary for $35.8 million. Traversy noted that Calgary is a target market due to improving fundamentals and positive momentum. This acquisition aligns with Dream DCI’s long-term strategy, as Traversy remarked, “One of the things that we’ve always liked about industrial is that it can be a long-term covered land play, whether that’s in 10, 20, 30, or 40 years.“

In London, England, Dream Industrial and its parent company, Dream Unlimited Corp., acquired industrial developer Chancerygate for $147 million. Dream Industrial is committing an additional $47 million to complete ongoing Chancerygate developments. As of June 30, Dream Industrial had an interest in and managed 348 industrial assets (including 565 buildings), totaling approximately 75.7 million square feet of gross leasable area, showcasing its extensive global footprint.

Dream Industrial is also exploring opportunities to expand or reposition certain buildings in its portfolio. The company is in the early stages of infill development on a 32-acre parcel of land on Torbram Road, just north of Toronto, reflecting its commitment to growth and optimization.