CPP Investments will take a 95 per cent stake in a $1.4 billion (all figures Cdn) joint venture with Chicago-based Bridge Industrial to develop industrial properties in core cities across the United States.
The $1.4 billion figure is the equity commitment to the venture, which will focus on developing industrial assets for long-term ownership in select U.S. markets, the partners said in a release Monday morning.
The venture will be seeded with a 175-acre industrial development site in Miami’s Airport West submarket.
“We’re pleased to form a new partnership in the growing industrial real estate sector alongside proven developer and operator Bridge, further diversifying our real estate investments across multiple U.S. markets,” said Peter Ballon, managing director and global head of real estate for CPP Investments, in the announcement. “The significant demand for purpose-built logistics real estate that can help ease existing warehouse supply burdens aligns with our long-term investment strategy.”
The CPP, Bridge Industrial Miami property
CPP and Bridge plan to develop six buildings comprising 2.6 million square feet of state-of-the-art warehouse space at the Miami Airport West property, which is located in the City of Doral.
The venture will target markets which are in need of more modern industrial space.
“We’re excited to form this new strategic partnership with CPP Investments, which will allow Bridge to continue to scale our infill portfolio in our core U.S. markets,” said Steve Poulos, the founder and CEO of Bridge, in the announcement.
“Demand for industrial space continues to outpace supply in infill markets across the U.S., supporting Bridge and CPP Investments’ shared vision of the long-term value and opportunity in the industrial sector.”
Bridge Industrial is a privately owned, vertically integrated real estate operating company and investment manager focused on the acquisition and development of class-A industrial real estate in Chicago, Miami, New Jersey/New York, Los Angeles/San Francisco, Seattle and London.
Since its inception in 2000, Bridge has acquired and developed more than 51 million square feet of industrial buildings/projects valued at more than $8.3 billion.
The firm is one of South Florida’s most active industrial developers. It has acquired approximately 500 acres in 16 transactions throughout Miami Dade and Broward Counties and delivered approximately seven million square feet of space across the region since entering the market in 2012.
Bridge’s current South Florida portfolio spans over five million square feet of company-owned and third-party-managed properties, with an additional 2.5 million square feet under construction.
About CPP Investments
CPP Investments is an investment management organization that manages the fund in the interest of contributors and beneficiaries of the Canada Pension Plan. It invests globally in public equities, private equities, real estate, infrastructure and fixed income.
Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments.
As of Sept. 30, 2021, the fund totalled $541.5 billion.