Fourteen properties across California, Texas and New Jersey anchor the new venture
An Ares Real Estate fund and the Public Sector Pension Investment Board have established a joint venture to invest up to US$2.4bn in logistics real estate in the United States.
The venture pairs Ares Real Estate's vertically integrated logistics investment capabilities and sourcing network with the capital of PSP Investments, described in the joint announcement as one of Canada's largest pension investors.
Cash-flowing assets in high-growth markets are the stated target.
The announcement identifies a seed portfolio of 5.2 million square feet across 14 properties in US industrial hubs including California, Texas, and New Jersey.
All figures in the announcement are in US dollars unless otherwise noted.
Marq Logistics, which represents Ares Real Estate's vertically integrated global logistics real estate platform, will lead sourcing and manage the assets within the joint venture.
The joint venture with PSP Investments builds on Ares' "US logistics footprint," Dave Fazekas, head of North America logistics at Ares Real Estate, said in the announcement.
He said onshoring, digital infrastructure buildout, and e-commerce growth are strengthening demand for logistics facilities in strategic locations.
Laurence Bastien, managing director of real estate investments, Americas at PSP Investments, said in the same announcement that the joint venture reflects the firm's strategy of investing in operators in sectors where it has strong conviction.
He said the US logistics sector benefits from durable demand and constrained supply in key submarkets, and that partnering with Ares lets PSP invest in assets "at scale."
