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PSP Investments targets UK real estate with joint venture – Pensions & Investments

Public Sector Pension Investment Board, Ottawa, which manages C$169.8 billion ($138.1 billion) in public pension fund assets, formed a joint venture with real estate operating company Bridge Industrial to acquire and develop U.K.-based logistics companies.

The joint venture will target a portfolio value of £1 billion ($1.4 billion), a joint news release from the organizations said Thursday.

The joint venture will have what the news release calls a “build-to-core” focus, which will include the acquisition and development of logistics assets in Greater London and the Midlands region.

“We are pleased to be partnering with Bridge to invest in the U.K. logistics sector as we grow our already extensive European logistics portfolio,” said Stephane Jalbert, PSP’s managing director for Europe and Asia-Pacific, real estate investments, in the news release. “Urban logistics is a key sector for PSP globally, given the accelerated growth of e-commerce and the need to adapt real estate to meet shifting consumer behavior. Bridge has proven development capabilities from which the venture will benefit, enhancing returns beyond the sector trend.”

As of March 31, 2020, PSP Investments’ real estate assets under management totaled C$23.8 billion, the most recent data available. The board’s real estate program focuses on establishing joint ventures with best-in-class partners, according to its website.

PSP Investments manages the pension assets of Canadian federal public service workers, Canadian Forces, Reserve Forces and the Royal Canadian Mounted Police.

Verena Garofalo, PSP spokeswoman, could not be immediately reached for further information.

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