Canada’s Public Sector Pension Investment Board (PSP Investments), together with Henley Holding Company, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), has closed on one of the year’s biggest industrial deals.
The two investors have bought a portfolio worth $3.15bn (€2.91bn) from investment funds run by Exeter Property Group, the industrial property specialists.
The 58m sqft portfolio acquired by the joint venture consists of core industrial properties located in 25 key distribution markets throughout the US.
It contains 209 high-quality industrial assets, mostly modern bulk warehouses providing critical infrastructure supporting e-commerce and traditional retailers, suppliers and wholesalers.
Exeter invested in the joint venture and will continue to manage the properties acquired.
Neil Cunningham, senior vice president, global head of real estate investments at PSP Investments, said: “We are pleased to have secured this attractive and complex investment opportunity, demonstrating our agility and capacity to move quickly alongside great partners.”
He added: “This investment is consistent with PSP Investments’ real estate strategy to make direct investments in sizeable, core industrial assets in key markets, alongside experienced partners who share our long-term investment horizon.”
Tom Arnold, head of Americas real estate at ADIA, said the Exeter portfolio fitted well into ADIA’s long-term real estate investment
He added: “We have great confidence in the growth potential of the US industrial sector, particularly in high-quality properties that meet the evolving logistical needs of traditional and omnichannel businesses.”
In November 2015, PSP Investments opened its first foreign office in New York City.