A joint venture between Canadian pension fund PSP Investments and the Abu Dhabi Investment Authority has acquired a portfolio of U.S. industrial properties from Exeter Property Group for $3.15 billion, the buyers said on Thursday.

Canadian pension funds and sovereign wealth funds are looking to buy real estate assets to diversify their investments and offset the effects of volatility in global equity markets and economic uncertainty.

“This investment is consistent with PSP Investments’ real estate strategy to make direct investments in sizeable, core industrial assets in key markets alongside experienced partners who share our long-term investment horizon,” said Neil Cunningham, PSP’s global head of real estate investments.

The sale of the 58-million-square-foot portfolio of core industrial properties is one of the biggest real estate deals this year, the companies said in a joint statement.

Exeter, a real estate investment manager, has invested in the joint venture and will continue to manage the purchased properties.

The portfolio consists of 209 properties, most of which are warehouses that support retailers, suppliers and wholesalers.

Source: Reuters