The Canada Pension Plan Investment Board has formed a joint-venture with Bridge Industrial to invest in high-quality industrial assets across key U.S. markets.

The partners have committed US$789 million in equity to the joint-venture, with CPP Investments holding a 95% stake and Bridge owning the remaining 5%. The joint-venture also retains the option to pursue development opportunities.

“We are excited to broaden our successful collaboration with CPP Investments as we work together to capitalize on outstanding opportunities to acquire premium industrial space in the U.S.,” said Steve Poulos, founder and CEO of Bridge.

This marks the second collaboration between the two entities, following their 2021 develop-to-core partnership that focused on new construction projects in Miami and Los Angeles.

“We are excited to broaden our successful collaboration with CPP Investments as we work together to capitalize on outstanding opportunities to acquire premium industrial space in the U.S.,” said Steve Poulos, Founder and CEO of Bridge.

The partnership comes at a time when retailers are increasingly competing for faster shipping times, despite a limited supply of new warehouse construction. The joint-venture will enable both companies to target prime industrial properties in high-demand regions, said CPPIB and Bridge.

“The industrial sector’s favourable market dynamics position this joint venture well to deliver strong returns for the CPP Fund,” said Sophie van Oosterom, Managing Director, 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 is a privately owned, vertically integrated real estate operating company and investment manager that specializes in acquiring, developing, and managing industrial properties. The firm operates in major global markets, including Chicago, Miami, New Jersey, New York, Los Angeles, San Francisco, Seattle, the U.K. and Europe.

Since its founding in 2000, Bridge has successfully acquired and developed nearly 74 million square feet of industrial buildings.

Photo: Bridge International