Ares, PSP Launch $2.4B U.S. Logistics Venture

Ares Management and Canada’s Public Sector Pension Investment Board have formed a joint venture that could invest as much as $2.4 billion in U.S. logistics real estate.

The partnership will target cash-flowing logistics properties in high-growth markets. Its seed portfolio comprises 14 properties totaling 5.2 million square feet across major distribution hubs, including markets in California, Texas and New Jersey.

Marq Logistics, Ares Real Estate’s vertically integrated global logistics platform, will source investments and manage the venture’s properties.

“The acceleration of onshoring, buildout of digital infrastructure and growing influence of e-commerce continue strengthening the investment fundamentals for strategically placed logistics facilities,” said Dave Fazekas, head of North America logistics at Ares Real Estate.

The venture comes as the U.S. industrial market shows signs of moving beyond its recent supply-driven slowdown. The national vacancy rate declined 20 basis points during the second quarter to 6.5%, its first quarterly decrease since 2022, according to CBRE. Demand for large distribution centers strengthened as construction deliveries slowed.

PSP Investments’ Laurence Bastien said logistics properties in favored submarkets benefit from durable demand and structurally limited supply. Partnering with Ares provides the pension investor with access to properties at scale and an operating platform capable of creating value at the asset level, she added.

The transaction extends an existing relationship between Ares and PSP Investments and follows Ares Real Estate’s recent $4 billion close for its fifth Japan logistics development fund.

Ares managed more than $671 billion across credit, real estate, private equity and infrastructure as of June 30. PSP Investments oversaw C$320.6 billion in net assets as of March 31.

Eastdil Secured Savills and Kirkland & Ellis advised Ares. Cushman & Wakefield and Fried Frank advised PSP Investments.