GLOBAL - Canada Pension Plan is planning to inject an additional $250m (€192m) into Goodman China Logistic Holding (GCLH), a joint venture with Australia's Goodman Group.

The latest deal brings the total amount invested on behalf of the Canadian Pension Plan Investment Board (CPPIB) and Goodman to $500m in a venture split 80/20.

Goodman and CPPIB initially teamed up in August 2009 to own and develop warehousing and distribution facilities to support China's expanding trade.

Meanwhile, the company has signed a $100m five-year facility with Credit Agricole Corporate and Investment Bank and ING Bank.

GCLH will use the new capital and credit to capitalise on new opportunities in China and support a projected tenfold increase in investments in Greater China from $300m to $3bn over the next five years.

Graeme Eadie, senior vice-president of real estate investment at the CPPIB, said: "CPPIB's additional equity investment reflects the strength of our relationship with Goodman and the significant opportunities arising from the strong demand for modern, efficient logistics space in China."

He predicted GCLH would enjoy strong growth over the long term through its participation in the anticipated rapid growth of this market.

Goodman chief executive Greg Goodman said the fresh capital would give the joint venture "significant capacity" to take advantage of new opportunities in line with the execution of its China growth strategy.

He said the new credit facility underscored the fact that banks continue to lend to "well- managed property groups with good operating businesses and high-quality assets", despite the tough economic environment.

The GCLH currently has 20 completed properties in Greater China, offering 1.5m square meters of gross lettable space.

It has completed projects in Shanghai and Beijing and has development projects in the pipeline in Chengdu, Langfang, Tianjin and Suzhou.

CPPIB has been expanding into Asia of late.

In September, CPPIB formed a 50/50 joint venture with Singapore-listed Global Logistics to build cargo and warehouses in Japan, barely three months after it acquired a 50% stake in Hong Kong Interlink, an industrial facility under progress near the Hong Kong airport in June.

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