KingSett Capital and University Pension Plan Ontario are partnering to invest in income-generating industrial real estate assets in major Canadian urban markets, the institutional investors announced.
The partnership will focus on acquiring multi-tenant, light-industrial buildings in supply-constrained markets, with an emphasis on assets where active management can support long-term value creation. The partners said Canada’s industrial sector continues to benefit from evolving supply chains, population growth and limited availability, supporting demand and rental growth in key markets.
The initiative marks the first partnership of its kind for KingSett and expands UPP’s exposure to industrial real estate as the pension plan seeks to diversify its holdings and increase allocations to income-generating assets.
“We are thrilled to partner with KingSett to establish a dedicated Canadian industrial strategy aligned with our goal of building a resilient real estate portfolio focused on value creation over the long term,” said Peter Martin Larsen, senior managing director and head of private markets at UPP.
“This investment is designed to provide exposure to industrial assets, such as warehousing and light manufacturing facilities in close proximity to urban centres, underpinned by strong domestic demand and attractive inflation protection,” said Peter Martin Larsen, senior managing director and head of private markets at UPP.
“Through this partnership, we are selectively deepening our position in a sector supported by strong fundamentals, enhancing our ability to deliver secure, stable pensions for our members. KingSett brings deep expertise across market cycles, a long-standing presence in Canada’s major industrial hubs, and a proven track record of creating value through active asset management.”
KingSett said its industrial real estate transaction volume has exceeded $13 billion over the past 24 years, giving the firm insight into asset performance and trends across the sector.
“We are delighted to begin a long-term strategic partnership with UPP and grateful for their support,” said Rob Kumer, CEO of KingSett Capital.
“The Canadian industrial sector is at an inflection point: Investors, developers and tenants are adjusting to an evolving trade relationship with the U.S., new supply chains, and the need to improve efficiencies to remain competitive in this environment,” said Rob Kumer, Kingsett’s CEO.
“KingSett is well-positioned to leverage our relationships, scale and platform to navigate this environment and build a portfolio of industrial properties designed to deliver sustainable premium risk-weighted returns for UPP.”
Kumer said the partnership complements KingSett’s existing fund strategies and represents “an important milestone” for the company.
“We are introducing a highly customized investment solution that is designed to meet the specific needs and objectives of an institutional investor like UPP,” he said. “We are aiming to expand on this type of program as an important differentiator for our investor-partners and as a driver of growth for KingSett in the years to come.”
Kingsett and UPP have yet to announce announced any acquisitions under the new partnership.