Goodman Group and Canada Pension Plan Investment Board (CPP Investments) have increased their total equity commitment to a US logistics partnership by 83% to $5.5bn (€5.1bn).

In line with the Goodman North American Partnership’s (GNAP) 55/45 equity structure, Goodman will allocate $1.4bn and CPP Investments will put $1.1bn in the venture.

Established in 2012 with an initial commitment of $890m, the GNAP partnership – which invests in logistics and industrial property in key North American markets – has grown its assets to $3bn.

In a joint statement, the companies said with this increased equity allocation and allowing a moderate amount of debt, total investment capacity in GNAP has increased up to $7.5bn, providing significant capacity for property acquisitions and developments.

Anthony Rozic, CEO, Goodman North America, said the partnership continues to build scale in select US logistics markets, including Los Angeles, Southern California’s Inland Empire and the New Jersey industrial markets, totalling over 16m sqft of assets under management.

“Our portfolio is concentrated in key urban locations close to large consumer populations and allows our customers to meet growing consumer demands for faster last-mile delivery.

“Having acquired over 200 acres in key infill locations in the last six months, the partnership has the momentum, expertise and capital to continue acquiring and developing new properties in our target markets.”

Peter Ballon, managing director, global head of real estate, CPP Investments, said: “With the rapid growth of e-commerce in the US and ongoing supply-chain modernization, fundamentals in the logistics sector continue to strengthen, particularly in strong urban markets, reflected by record sustained rent growth and occupancy levels.

“Through GNAP, CPP Investments is well-positioned to capitalise on these structural shifts.”