Canada Pension Plan Investment Board (CPP Investments) is the latest institution to invest in GLP Japan Income Fund (GLP JIF), the largest private open-ended logistics fund in Japan.
CPP Investment has committed to invest JPY25bn (€199m) in the fund, which has been seeded with 11 newly-developed logistics assets in Greater Tokyo and Osaka.
GLP did not disclose the identity of its first cornerstone investor when it launched the fund last month.
A person familiar with the fund told IPE Real Assets that that first investor is Allianz Real Estate and that it has committed JPY40bn to GLP JIF. The German investor currently holds the single largest stake in the fund.
CPP Investments said the transaction marked an extension of its partnership with GLP that was first established in 2011 through formation of a 50-50 joint venture, the GLP Japan Development Fund.
This venture was subsequently expanded multiple times, including through the launch of a second Japan development venture in 2016.
At the end of August 2020, CPP Investments successfully exited its investment in the first joint venture development fund, receiving JPY48bn in net proceeds.
CPP said today that it would reinvest JPY25bn from those proceeds with GLP in its newly-established GLP JIF.
“We are pleased to continue our strategic relationship with GLP while recycling capital for other compelling investment opportunities,” said Jimmy Phua, CPP Investments’ managing director and head of real estate investments, Asia.
Strong fundamentals in the Japanese logistics market continued to make this a compelling investment opportunity for long-term investors, he said.
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