The Canada Pension Plan Investment Board, the Alberta Investment Management Corp. and the WPT Industrial Real Estate Investment Trust are joining forces to aggregate a portfolio of U.S. industrial properties in key logistics markets.
“The combination of AIMCo and CPPIB’s scale and sophistication creates a long-term opportunity that will meet the needs of our clients and stakeholders,” said Micheal Dal Bello, senior vice-president of real estate at AIMCo, in a press release. “AIMCo looks forward to this expanding relationship with WPT in this U.S. industrial venture with CPPIB.”
The venture will consist of up to US$1 billion of total equity between the three parties, with the CPPIB and the AIMCo set to own 45 per cent each. WPT will hold 10 per cent and will manage the acquired properties.
“We are thrilled to partner with two premier global real estate investors that share our long-term vision for the industrial sector,” said Scott Frederiksen, chief executive officer of WPT, in the release. “We appreciate the continued confidence and support of AIMCo and look forward to building our relationship with CPPIB through the growth and success of the joint venture.”
The portfolio will focus on national hubs, including Atlanta, Chicago and Dallas. Major port locations, such as Los Angeles, Seattle and New Jersey, also present favourable fundamentals, the release noted.
“The U.S. industrial sector provides an attractive investment opportunity, driven by trends such as growth in e-commerce, as well as the evolution and modernization of global supply chains,” said Hilary Spann, managing director and head of Americas, real estate investments at the CPPIB, in the release. “We are pleased to be partnering with WPT and AIMCo to expand our presence in this sector.”