CPPIB forms JV for Canadian industrial foray

The $201.5 billion pension plan has invested $200 million in the first phase of an Edmonton development project with WAM Development Group and The Walton Group.

In its first investment in the Canadian industrial sector, the Canadian Pension Plan Investment Board (CPPIB) has formed a joint venture with Canadian developer WAM Development Group and real estate investment and development firm The Walton Group to build a 250-acre industrial site in Edmonton, Alberta. The $201.5 billion pension plan is committing an initial $200 million to the first phase of the project, representing an 85 percent interest in the joint venture.  
Henday Industrial Park will be developed in two phases, with phase one expected to break ground this summer. WAM and Walton, through Walton Development and Management, plan to jointly develop the property into approximately four million square feet of distribution and logistics warehousing.
“We are pleased to complete our first real estate investment in the Canadian industrial sector and to be partnering with WAM and Walton on this opportunity to expand Edmonton’s industrial market,” said Peter Ballon, vice president and head of real estate investments for the Americas at CPPIB, in a statement. “We look forward to partnering with them to develop a prime industrial development in one of North America’s strongest industrial markets.”
The project marks the latest high-profile real estate investment in the burgeoning Edmonton market. The Urban Land Institute and PwC’s Emerging Trends in Real Estate 2014 named the city as the number 2 Canadian market to watch after Calgary, due to the development prospects from its booming energy sector. Recently, the city has attracted capital from such players as the Healthcare of Ontario Pension Plan, LaSalle Investment Management and Hungerford Properties.