Singapore’s Global Logistic Properties (GLP) and the Canada Pension Plan Investment Board (CPPIB) have formed a second joint venture to invest $2bn (€1.8bn) in Japan.

The second GLP Japan Development Venture II has JPY100bn (€784m) to invest in logistics developments.

Jimmy Phua, CPPIB’s managing director and head of real estate investments in Asia, said strong fundamentals in the Japanese logistics market made the vehicle a “compelling investment opportunity for a long-term investor like CPPIB”.

He added: “We remain committed to investing in the Japanese market.”

The latest venture will be seeded with the 319,000sqm Nagareyama logistics park near Tokyo.

The scheme, GLP’s largest project in Japan, is expected to cost JPY59bn.

The venture can sell assets to GLP’s J-REIT and will begin construction of new developments this year. 

Ming Mei, chief executive at GLP, said demand for modern logistics facilities in Japan was still very strong.

“The market landscape has evolved since the launch of our first Japan development fund more than four years ago, and we feel it is a good time to lock in long-term capital,” Mei said.

GLP and CPPIB’s first Japan development venture, launched in September 2011, has reached 92% of its investment capacity, with $2.4bn of projects under development.