REAL ESTATE NEWS

Bridge Industrial is teaming up with Canada Pension Plan Investment Board (CPP) on a $789 million joint venture that will focus on investments in industrial assets. While CPP is based in Toronto, the strategy will be focused on "several" unnamed "core markets" in the U.S., according to a statement from two investment firms.

Under the terms, CPP will operate a 95 percent stake, while Bridge will own the rest.

Both firms will target what they call "high-quality industrial properties." This comes in light of competition from retailers looking for speedy shipping. Plus, the duo will consider development opportunities under the joint venture.

This isn't the first time Bridge and CPP have worked together. In 2021, they invested in new construction projects in Los Angeles and Miami.

“The industrial sector’s favorable market dynamics position this joint venture well to deliver strong returns for the CPP Fund,” said Sophie van Oosterom, managing director and head of real estate at CPP Investments.

“Bridge and CPP Investments have a shared vision of the value and opportunity in the sector, and we’re pleased to expand our partnership.”

Bridge, which has developed and acquired 74 million square feet of industrial properties since its founding in 2000, focuses on areas that can meet demand for next-day and last-mile delivery. Its operational markets in the country include New York, Chicago New Jersey, Miami, Los Angeles, San Francisco, and Seattle. Overseas, its regions extend to Europe including the UK.

For the national industrial sector, the latest report from Cushman & Wakefield found that vacancy ticked up 20 basis points to 6.7% in the fourth quarter. However, the CRE firm noted that the category has likely peaked, as it is 30 basis points below the 10-year pre-pandemic average. Plus, net absorption was positive in 60 percent of the 84 markets Cushman tracked.

CPP and Bridge said new warehouse space construction has become "increasingly" more scarce.

Source: GlobeSt/ALM