The joint venture allocates US$789m to acquire and develop premium industrial properties in key markets
Bridge Industrial and Canada Pension Plan Investment Board (CPP Investments) has announced a new joint venture to invest in high-quality industrial properties across key US markets.
The partnership will also retain the flexibility to explore development opportunities.
The joint venture has allocated US$789m in equity, with CPP Investments owning a 95 percent stake and Bridge holding the remaining 5 percent. This marks the second collaboration between the two entities.
Their initial partnership, established in 2021, focused on develop-to-core projects, deploying capital into new construction in Miami and Los Angeles.
Steve Poulos, founder and CEO of Bridge Industrial, expressed optimism about the expanded partnership.
“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 U.S.,” said Poulos.
The partnership promises to target high-quality industrial properties as demand for faster shipping times intensifies, despite a shortage of new warehouse construction space.
Sophie van Oosterom, managing director and head of Real Estate at CPP Investments, highlighted the strong market dynamics.
“The industrial sector’s favourable market dynamics position this joint venture well to deliver strong returns for the CPP Fund,” she said.
Van Oosterom added that CPP Investments and Bridge share a common vision for the value and potential in the industrial real estate sector, underscoring their decision to expand the partnership.
