Key Takeaways
- • Ares Real Estate and the Public Sector Pension Investment Board (PSP Investments) have formed a joint venture to invest up to US$2.4 billion in US logistics real estate, per the joint announcement.
- • The venture's seed portfolio comprises 5.2 million square feet across 14 properties in US industrial hubs including California, Texas and New Jersey.
- • Marq Logistics, Ares Real Estate's vertically integrated global logistics platform, will lead sourcing and manage the joint venture's assets.
- • The stated target is cash-flowing assets in high-growth markets, with PSP citing durable demand and constrained supply in key submarkets.
Summary
An Ares Real Estate fund and the Public Sector Pension Investment Board (PSP Investments) have established a joint venture to invest up to US$2.4 billion in logistics real estate in the United States, according to the joint announcement reported by Benefits and Pensions Monitor. All figures in the announcement are in US dollars unless otherwise noted.
The venture pairs Ares Real Estate's vertically integrated logistics investment capabilities and sourcing network with the capital of PSP Investments, which the announcement describes as one of Canada's largest pension investors. The stated objective is to acquire cash-flowing assets in high-growth markets.
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. 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.
Dave Fazekas, head of North America logistics at Ares Real Estate, said the joint venture builds on Ares' US logistics footprint. He cited onshoring, digital infrastructure buildout and e-commerce growth as factors strengthening demand for logistics facilities in strategic locations.
Laurence Bastien, managing director of real estate investments, Americas at PSP Investments, said the joint venture reflects the firm's strategy of investing alongside operators in sectors where it has strong conviction. She said the US logistics sector benefits from durable demand and constrained supply in key submarkets, and that partnering with Ares allows PSP to invest in assets "at scale."
The venture pairs Ares Real Estate's vertically integrated logistics investment capabilities and sourcing network with the capital of PSP Investments, which the announcement describes as one of Canada's largest pension investors. The stated objective is to acquire cash-flowing assets in high-growth markets.
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. 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.
Dave Fazekas, head of North America logistics at Ares Real Estate, said the joint venture builds on Ares' US logistics footprint. He cited onshoring, digital infrastructure buildout and e-commerce growth as factors strengthening demand for logistics facilities in strategic locations.
Laurence Bastien, managing director of real estate investments, Americas at PSP Investments, said the joint venture reflects the firm's strategy of investing alongside operators in sectors where it has strong conviction. She said the US logistics sector benefits from durable demand and constrained supply in key submarkets, and that partnering with Ares allows PSP to invest in assets "at scale."
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