Bridge Industrial (“Bridge”) and the Public Sector Pension Investment Board (“PSP Investments”) today announced the establishment of a joint venture to acquire and develop logistics properties in the United Kingdom, targeting a portfolio value of £1 billion ($1.4 billion USD).

The venture has a build-to-core focus, including the acquisition and development of last-mile logistics assets within high-barrier infill submarkets in Greater London and the Midlands region. Bridge will oversee development and the implementation of value-add measures to create state-of-the-art, purpose-built infill industrial assets. The venture will target market-leading sustainability credentials.

“We are excited to form this strategic partnership with PSP Investments as Bridge continues to grow its global portfolio and capital partnerships,” said Sean Zasche, Bridge’s Chief Financial Officer. “Their focus on high-quality, infill real estate and long-term ownership aligns well with Bridge’s business model.”

Bridge’s UK operations are led by Paul Hanley, Partner, who oversees a London-based team of acquisition and development professionals.

“We’re extremely excited about the growth in the logistics industry that is creating strong demand for facilities across the United Kingdom,” said Hanley. “This joint venture with PSP Investments marks the beginning of a long-term partnership that will allow us to continue the strategic expansion of our portfolio.”

PSP Investments is one of Canada’s largest pension investment managers with a diversified global portfolio across public and private markets.

“We are pleased to be partnering with Bridge to invest in the UK logistics sector as we grow our already extensive European logistics portfolio,” said Stéphane Jalbert, PSP’s Managing Director for Europe and Asia Pacific, Real Estate Investments. “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 behaviour. Bridge has proven development capabilities from which the venture will benefit, enhancing returns beyond the sector trend.”