The Canada Pension Plan Investment Board (CPPIB) has boosted its joint venture with Goodman Group by $500m (€373m) to invest in more logistics and warehouse facilities in the US.

Peter Ballon, managing director and head of real estate Investments in the Americas for CPPIB, said: “The US industrial sector remains attractive as demand for logistics and warehouse space has been increasing over the past several years and the US macro environment is showing positive momentum.”

The extra commitment will enable the pension fund to expand its industrial portfolio in North America and broaden its longstanding international relationship with Goodman, he said.

The joint venture – the Goodman North American Partnership (GNAP) – was formed two years ago between the two organisations. Goodman has 55% of the partnership and the CPPIB holds the remaining 45%.

CPPIB said its allocation to GNAP was now $900m, while Goodman’s investment was $1.1bn.

The partnership’s investment strategy is to put together a portfolio of institutional-quality, income-producing, modern logistics and warehouse properties in major markets in the US, CPPIB said.

So far, GNAP has committed investment capital to six development projects in California with a total potential gross leasable area of 6.5m square feet.

It is also pursuing several development opportunities in its target markets of California, New Jersey and Pennsylvania, with a total gross leasable area that could be developed of 8.6m square feet.

Goodman and CPPIB have cooperated since 2009, when they made a joint investment in China, followed by a deal in Australia.

CPPIB has said the industrial sector can be difficult to invest in for large investors because deal sizes are often small, which means it is necessary to have a partner able to manage this.