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Dundee Industrial REIT will use the IPO proceeds to buy up 70 “light industrial properties,” or warehouses and manufacturing plants, in seven provinces.Fernando Morales/The Globe and Mail

Dundee Industrial Real Estate Investment Trust's initial public offering pulled in $155-million in one of the larger sales to hit the market this year.

While the amount raised didn't quite hit the $176-million peak anticipated in the months leading up to the big reveal, the offering still met the median yield target predicted earlier this summer, bringing in $10 per unit with a 6.75 yield.

Dundee Industrial REIT will use the IPO proceeds to buy up 70 "light industrial properties," or warehouses and manufacturing plants, in seven provinces. These are primarily owned by Dundee REIT, the group's Toronto-based parent. An additional seven properties being separately acquired are co-owned by associates of Return On Innovation Capital Ltd. In total, these 77 properties will make Dundee Industrial REIT the owner of six million square feet of buildings.

As outlined in the company's documents, Dundee Corp. will purchase 1.75 million units at the time of the offering, and Michael Cooper, the company's vice-chairman and chief executive officer, will buy 750,000 units. Investors can look for the REIT on the Toronto Stock Exchange under the symbol DIR-U.

This is a significant IPO, given there have been so few this year, but it's not a surprising one. REITs have been a very popular investment vehicle with low interest rates and mortgage costs attracting yield-seeking investors.