US group Bridge Industrial and Canada’s Public Sector Pension Investment Board (PSP Investments) have established a joint venture to acquire and develop £1bn (€1.2bn) worth of logistics properties in the UK.

The build-to-core venture includes buying and developing last-mile logistics assets in Greater London and the Midlands region.

Bridge will oversee the development and the implementation of value-add measures to create infill industrial assets.

“We are pleased to be partnering with Bridge to invest in the UK logistics sector as we grow our already extensive European logistics portfolio,” said Stéphane Jalbert, PSP’s managing director for Europe and Asia-Pacific, real estate investments.

Jalbert said that urban logistics was a key sector for PSP globally, given the accelerated growth of e-commerce and the need to adapt real estate to meet shifting consumer behaviour.

Sean Zasche, Bridge’s CFO, said the strategic partnership with PSP Investments would enable Bridge to continue to grow its global portfolio and capital partnerships.

“PSP Investments’ focus on high-quality, infill real estate and long-term ownership aligns well with Bridge’s business model,” he said.

Paul Hanley, Bridge’s partner, who oversees a London-based team of acquisition and development professionals, said: “This joint venture with PSP Investments marks the beginning of a long-term partnership that will allow us to continue the strategic expansion of our portfolio.”

Bridge focuses on the acquisition and development of industrial real estate in the US and the UK.

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