Canada Pension Plan Investment Board (CPP Investments) and Bridge Industrial have formed a US warehouse development partnership.
CPP Investments and Bridge have allocated $1.1bn (€950m) in equity to the joint venture which will focus on developing industrial assets for long-term ownership in core US markets.
The companies said the venture is seeded with a 175-acre site within Miami’s Airport West submarket, located in the city of Doral. The development will include six buildings that will total 2.6m sqft of state-of-the-art warehouse space once completed.
CPP Investments, which manages the assets of the C$541bn (€369bn) pension fund, will own a 95% stake in the joint venture and Bridge will own the remaining 5%.
Peter Ballon, managing director, global head of real estate, CPP Investments, said: “We’re pleased to form a new partnership in the growing industrial real estate sector alongside proven developer and operator Bridge, further diversifying our real estate investments across multiple US markets.
“The significant demand for purpose-built logistics real estate that can help ease existing warehouse supply burdens aligns with our long-term investment strategy.”
Steve Poulos, founder and CEO of Bridge Industrial said: “We’re excited to form this new strategic partnership with CPP Investments, which will allow Bridge to continue to scale our infill portfolio in our core US markets.
“Demand for industrial space continues to outpace supply in infill markets across the U.S., supporting Bridge and CPP Investments’ shared vision of the long-term value and opportunity in the industrial sector.”
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