CPPIB, Goodman invest further $1.25bn in Chinese logistics JV
The Canada Pension Plan Investment Board (CPPIB) and Goodman have increased their investment in a Chinese logistics joint venture by $1.25bn (€1.1bn).
The two investors backed the core, sector-specific Goodman China Logistics Partnership (GCLP).
On an 80:20 basis, CPPIB committed $1bn and Goodman $250m.
The partnership has increased commitments to the JV, investing in the greater Shanghai and Beijing regions and key Western China markets, every year since 2012.
Jimmy Phua, CPPIB managing director and head of real estate investments for Asia, said the investor continued to see China as a strong investment market.
“The fundamentals of the Chinese logistics and e-commerce sectors, which underpin the growth in demand for prime logistics facilities, remain compelling,” Phua said.
GCLP, established in 2009 with an initial $300m equity commitment, is buying nine projects, including land, from the Goodman Group.
Greg Goodman, group chief executive, said: “With this increase in equity allocation and acquisitions, our China platform will be strengthened across key markets and provide full alignment for the ongoing expansion of the portfolio.”