APG, on behalf of its pension fund client ABP, has made the largest commitment to Faropoint’s Industrial Value Fund IV to date. This marks APG's first investment with Faropoint, a tech-enabled real estate investment manager specializing in last-mile industrial warehouses.
Fund IV, launched in June 2025 with a $1 billion target, continues Faropoint's flagship Industrial Value Fund series strategy of acquiring and enhancing last-mile urban logistics properties to build institutional-grade portfolios across key U.S. markets.
APG and ABP’s commitment further diversifies the Fund's institutional investor base, which spans North America, Europe, and the Middle East. With additional capital discussions underway, Faropoint is progressing well towards the Fund's $1 billion target.
Capitalizing on long-term trends
The commitment comes as last-mile industrial real estate continues to benefit from secular tailwinds including e-commerce growth, supply chain reconfiguration, and increasing demand for urban distribution networks in high population density markets. Properties under 100,000 square feet have historically demonstrated stronger fundamentals and more resilient performance than the broader industrial sector. Faropoint's focus on infill properties in supply-constrained urban corridors positions Fund IV to capitalize on these long-term trends while maintaining disciplined underwriting through market cycles.
“Last‑mile industrial properties complement bulk and regional distribution by serving demand that is closely tied to local population density and consumption,” says Steven Hason, Managing Director and Head of Americas Real Assets at APG. “Infill locations and supply constraints support stable occupancy and faster re‑leasing, while a diversified tenant base and shorter lease terms allow rents to adjust more dynamically. Bulk and regional facilities provide scale and network efficiency upstream, with last‑mile assets anchoring final delivery and helping balance portfolio cash flow across cycles.”
Data‑driven execution and strong local sourcing capabilities
“This investment aligns with our focus on delivering long‑term value for our clients through exposure to resilient real assets”, continues Hason. “Fund IV offers a compelling way to expand ABP’s private investment portfolio into the last‑mile logistics segment. The strategy is supported by Faropoint’s data‑driven execution and strong local sourcing capabilities. As supply chains evolve and urban distribution needs continue to grow, we see lasting relevance for this part of the market.”
Within logistics, APG seeks balanced exposure across bulk, regional, and last‑mile distribution to diversify macro sensitivity and strengthen portfolio stability across market cycles. Despite historically strong performance and stable fundamentals, the infill industrial segment has been challenging for large institutional investors to access due to the granularity of execution.
Assembling a diversified portfolio
Fund IV pursues a strategy of assembling a diversified portfolio of approximately 200-250 assets, primarily targeting suite sizes between 20,000 and 40,000 square feet across gateway, primary, and select secondary U.S. markets. It focuses on mark-to-market opportunities where in-place rents are materially below market, complemented by selective lease-up opportunities.
Faropoint is one of the largest and most active managers focused primarily on industrial assets under 100,000 square feet—a segment characterized by highly fragmented ownership and limited institutional penetration. Hason concludes: “Their deep relationships with local brokers and established market presence provide consistent access to off‑market and repeat deal flow, enabling a scalable aggregation strategy across key U.S. infill markets. Faropoint’s proprietary technology further enhances this advantage. Its sourcing platform, FarOS, centralizes deal flow and accelerates underwriting, while the AI‑driven underwriting engine REXy supports efficient acquisition and leasing decisions. This integrated, tech‑enabled platform allows Faropoint to execute small‑asset aggregation with speed, consistency, and discipline at a scale that is difficult to achieve in this segment.”
To date, Fund IV has acquired or placed under contract 30 properties totaling 1.72 million square feet across 9 markets, representing approximately $284 million in total investment value.