PGIM Real Estate has teamed up with Bridge Development Partners create a $150m (€135m) US cold storage investment program, targeting $400m in assets.
The companies said the newly launched joint venture will target value-add returns through the
development of cold storage facilities, as well as the acquisition and repositioning of assets.
The venture has been seeded with Chicagoland cold storage facility, Bridge Point Northlake, a 1.5m sqft asset acquired by Bridge Development in 2014.
Brian Niven, senior vice president, cold storage at Bridge Development Partners, said: “Bridge Point Northlake provides both Bridge and PGIM Real Estate with a strong seed asset that will serve as the foundation on which we build our national cold storage portfolio.
“This programme is paramount as we see populations across the US surging and the demand for fast, fresh product increasing. We’re thrilled to partner with PGIM Real Estate on such a meaningful joint venture, and we look forward to building out this portfolio on a national level.”
Darin Bright, managing director and senior portfolio manager for PGIM Real Estate’s US core-plus investment strategy, said: “As the online food delivery market in the US continues to grow, the need for cold storage industrial space is skyrocketing and we expect the pace of demand to continue on that
“Our joint venture with Bridge – beginning with our acquisition of a seed asset in Chicago’s most sought-after industrial submarket – positions us
for success as we establish a best-in-class cold storage portfolio nationally on behalf of our investors.”