New joint venture targets high-quality us industrial properties amid growing demand for logistics space
Canada Pension Plan Investment Board (CPP Investments) and Bridge Industrial have formed a joint venture to invest in high-quality industrial properties across several key US markets.
The partnership will also have the flexibility to pursue development opportunities.
CPP Investments holds a 95 percent stake in the US$789m venture, with Bridge retaining the remaining 5 percent.
This collaboration marks their second partnership, following the initial develop-to-core venture established in 2021, which focused on construction projects in Miami and Los Angeles.
Sophie van Oosterom, managing director and head of Real Estate at CPP Investments, stated, “The industrial sector's favourable market dynamics position this joint venture well to deliver strong returns for the CPP Fund.”
Van Oosterom noted the shared vision between CPP Investments and Bridge regarding the value and opportunities within the industrial space.
Steve Poulos, founder and CEO of Bridge Industrial, expressed excitement about the partnership, saying, “We are excited to broaden our successful collaboration with CPP Investments as we work together to capitalize on outstanding opportunities to acquire premium industrial space in the US.”
According to the press release, the joint venture targets industrial properties in key markets as retailers compete for faster shipping times despite increasingly limited space for new warehouse construction.
