Goodman Group, Canada Pension Plan Investment Board (CPP Investments) and APG Asset Management have expanded their three-way UK logistics investment partnership with a further £300m (€327m) commitment each.
The trio formed the Goodman UK Logistics Partnership in 2015 and has since deployed over £381m across 13 investments currently worth £478m.
The latest £900m commitment will be used to further expand the portfolio logistics and industrial properties located across the South East and M1/M6 corridors, as well as last-mile locations, particularly around Greater London, the companies, said in a joint statement.
Stephen Young, investment management director, Goodman UK, said: “The partnership sees us continuing our investment in strategic locations that meet the rising demand for modern, well-located logistics properties.
”Building on the strength of the UK portfolio to date, this increased commitment provides us with the equity to support the future development and acquisition of best-in-class urban logistics space where supply is limited and demand is driven by consumers.”
Tom Jackson, managing director, head of UK real estate, CPP Investments, said: “Structural changes in the retail market and logistics supply chain, together with an acceleration of online consumerism, are driving strong demand for quality logistics space to service major population centres in the UK.”
Max Remmers, senior real estate portfolio manager at APG, said: “With this capital increase we continue to increase our allocation to this resilient segment of the property market, thereby focusing on supply-constrained infill locations which are benefiting from structural trends such as growing online penetration, supply chain reconfiguration and urbanisation.”
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