Public Sector Pension Investment Board (PSP Investments) has entered into a GBP1 billion (US$1.4 billion) joint venture with Bridge Industrial to acquire and develop logistics properties in the UK, following a trend of Canadian public pension funds investing in the sector.
Logistics property has taken off in recent years, but the pandemic has boosted the sector as e-commerce has driven demand for home deliveries. Global SWF data show that state-owned investors deployed nearly US$4 billion in capital in UK logistics infrastructure from 2017 with Canadian PPFs dominating acquisitions. In the year-to-date, SOIs have invested US$718 million in UK logistics RE. If this trend continues, 2021 will reach new heights in SOI investment in the sector, after last year’s record-breaking US$1.67 billion.
PSP Investments and Bridge are focusing on build-to-core, including last-mile logistics assets in Greater London and the Midlands region.
Stéphane Jalbert, PSP’s Managing Director for Europe and Asia Pacific, Real Estate Investments, said: “We are pleased to be partnering with Bridge to invest in the UK logistics sector as we grow our already extensive European logistics portfolio. 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.”
Paul Hanley, Bridge’s Partner for UK operations, said: “We’re extremely excited about the growth in the logistics industry that is creating strong demand for facilities across the United Kingdom. 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.”
