Global investment manager Ares Management Corporation and Canadian pension investor PSP Investments have formed a joint venture to target up to $2.4 billion in US logistics real estate.

The partnership merges Ares Real Estate’s integrated logistics platform with capital from PSP Investments to acquire assets in major high-growth markets. It kicks off with a 5.2 million-square-foot seed portfolio. This initial deal contains 14 high-quality properties situated in key US industrial regions, including New Jersey, Texas and California.

Marq Logistics, the global logistics real estate platform of Ares Real Estate, will manage the assets and handle deal sourcing for the venture.

“This joint venture with a leading institutional investor like PSP Investments underscores the strong positioning that Ares has established across our U.S. logistics footprint,” said Dave Fazekas, Head of North America Logistics in Ares Real Estate. “The acceleration of onshoring, buildout of digital infrastructure and growing influence of e-commerce continue strengthening the investment fundamentals for strategically placed logistics facilities. We are proud to expand Ares’ longstanding relationship with PSP Investments as we leverage our collective scale and experience to identify compelling deployment opportunities and deliver value for tenants, communities and investors.”

“Best-in-class operators, in sectors where our conviction is strongest — that is what our real estate strategy is built around, and this joint venture has both,” said Laurence Bastien, Managing Director, Real Estate Investments, Americas at PSP Investments. “The US logistics sector benefits from durable demand drivers and structurally constrained supply in the submarkets that matter most. Partnering with Ares allows us to invest in high-quality assets at scale and alongside an operating platform with the capabilities to drive value at the asset level.”

Advising Ares on the deal were Eastdil Secured Savills on finance and Kirkland & Ellis LLP on legal matters. PSP Investments worked with Cushman & Wakefield as financial advisor, alongside Fried, Frank, Harris, Shriver & Jacobson LLP for legal advice.