The deal targets warehouses and light manufacturing near Canada's urban centres amid US trade uncertainty
University Pension Plan Ontario is deepening its bet on Canadian warehouses and light manufacturing facilities, partnering with private equity real estate firm KingSett Capital to build a portfolio of industrial properties across the country's major urban markets.
The two firms announced the partnership will target multi-tenant, light industrial buildings in supply-constrained markets.
UPP said the deal furthers portfolio diversification and increases its allocation to income-generating assets designed to deliver long-term, stable returns for members.
KingSett chief executive Rob Kumer told reporters the Canadian industrial sector is at “an inflection point,” with investors, developers, and tenants adjusting to a shifting US trade relationship and supply chain pressure.
KingSett, he said, is positioned to use its relationships and scale to navigate the environment.
UPP's Peter Martin Larsen said the fund is “selectively deepening” its industrial position, citing strong domestic demand and inflation protection relevant to pension funds managing long-dated liabilities.
KingSett brings considerable industrial experience to the arrangement: the firm's total transaction volume in the sector over the past 24 years exceeds $13bn, according to the announcement.
The deal is the first of its kind for KingSett, which separately agreed last month to acquire $4.4bn in assets from First Capital REIT as part of a broader $9.4bn takeover alongside the Weston family's Choice Properties REIT, Bloomberg reported.
