A Canadian pension fund has made its first industrial purchase in the U.S. as part of a new partnership with the real estate arm of global asset management firm Sagard.

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Courtesy of Sagard

The facility at 310 Beltway Green Blvd.

Ontario Teachers’ Pension Plan and Sagard Real Estate purchased a 163K SF industrial facility southeast of Houston, according to a release. The Canadian investor, which manages retirement accounts for 340,000 educators, says it is looking to expand in the U.S. industrial sector.

“We are excited to partner with Ontario Teachers’ on this new U.S. industrial initiative,” Sagard Real Estate Chief Operating Officer and Head of Investments Mark Bigarel said in a statement.

“This relationship brings together two institutions with aligned values, a disciplined investment philosophy, and a shared perspective on opportunity in the industrial sector. We view this as the right time to initiate a strategy focused on lasting value creation in a sector supported by enduring demand drivers.”

The facility, named 255 Crossing Logistics Center, was built in 2024 at 310 Beltway Green Blvd. in Pasadena, Texas, according to a listing on LoopNet.

Sagard Real Estate has $5.2B in assets under management, development and property management. The company — which has offices in Canada, the United Arab Emirates, Italy, France and the U.S. — declined to comment on the purchase price.

OTPP has more than $260B in net assets, including nearly $30B in real estate assets spanning Canada, the U.S., Latin America, Asia-Pacific, the U.K. and Europe, according to its website. It also declined to comment on the purchase price of the asset.

“As we look to expand in the U.S. industrial sector, this investment fits well with our long-term, global strategy,” Ontario Teachers’ Senior Managing Director of Real Estate Karl Kreppner said in a statement. 

“We also believe that, with the underlying market dynamics, this asset provides long-term growth potential. We are pleased to be working with Sagard — a partner with deep sector expertise and an operator mindset — and we are looking ahead to identifying and collaborating on future opportunities.”

The investment comes as President Donald Trump’s early trade policies and tariffs aimed at Canada have put its role as the largest foreign investor in U.S. commercial real estate on shaky ground.

Canadian investors put more than $7B into U.S. real estate in 2024 and more than $70B since 2019, according to JLL data provided to Bisnow in March. But with shifting tariff policies — including the most recent hike on Canadian goods from 25% to 35% that took effect Aug. 1 — many have begun to scale back their U.S. investments.

Real estate executives at some of Canada’s largest pension funds, Healthcare of Ontario Pension Plan and Alberta Investment Management Corp., said at a conference run by NAIOP they are taking more of a cautious approach on future investments in the U.S., Financial Post reported.