PSP Investments and Bridge Industrial expand partnership to capture potential of e-commerce and create jobs in local communities
CHICAGO (January 18, 2022) — Bridge Industrial (“Bridge”) and the Public Sector Pension Investment Board (“PSP Investments”) today announced the establishment of a joint venture to develop best-in-class modern warehousing in urban infill locations in core markets across the US.
Bridge is a privately-owned, vertically integrated real estate operating company and investment manager. PSP Investments is one of Canada’s largest pension funds, with a diversified global portfolio across public and private markets.
PSP Investments and Bridge have allocated US$550M in equity to the joint venture with an option to re-up for a further US$550M, to bring the commitment to US$1.1 billion. The joint venture will see the deployment of a build-to-core strategy in supply-constrained U.S. markets, creating more warehouse space to support the global shift to e-commerce.
The venture serves as an expansion of the existing partnership between Bridge and PSP Investments, originally announced in May 2021, which was initially formed for the development and acquisition of last-mile industrial facilities in London and the United Kingdom.
“This venture is an exciting expansion of our successful partnership with PSP Investments,” said Steve Poulos, Founder, CEO, and Partner at Bridge. “We look forward to growing our portfolio of build-to-core industrial properties with PSP Investments, now on both sides of the Atlantic.”
The joint venture was seeded with two industrial building assets—one in New Jersey and the other in Los Angeles—enforcing Bridge’s credibility and business model in US coastal regions, which serve as major conduits of international goods.
“We are pleased to broaden our relationship with Bridge Industrial, from the UK to the US, with their proven expertise in developing modern facilities in key US markets,” said Carole Guérin, Managing Director, Head of Americas, Real Estate Investments, at PSP Investments. “We are strategically aligned to leverage the transition to e-commerce with high-quality properties that provide jobs in local communities while incorporating sustainable design features.”