CPPIB, APG back €1.3b Goodman logistics venture in UK

Canadian pension fund CPPIB and Dutch asset manager APG are backing a new £1 bn (€1.3 bn) logistics investment and development venture being set up by Goodman in the UK.

Each investor will commit £200 mln to the partnership in return for a 33% interest, providing the vehicle with a combined initial equity commitment of £600 mln and a total investment capacity in excess of £1 bn.

The new venture will target logistics and industrial property opportunities across the investment spectrum, including development, value-add and core investment. It has an initial portfolio of two developments located close to London and Birmingham comprising a combined 590,000 sq ft (63,500 m2).

Goodman’s CEO Greg Goodman, said: ‘We welcome APG and CPPIB into this new partnership, which continues to demonstrate our successful capital partnering approach and the strong support we have from leading global investor groups.’

Andrea Orlandi, head of real estate investments Europe, CPPIB, said: ‘This investment fits well with our long-term investment horizon as we expect the demand for high-quality logistics space to continue growing significantly. In addition, this is an excellent opportunity for us to deepen our existing relationships with Goodman and APG, and consolidates Goodman as a truly global real estate partner for CPPIB.’

Robert-Jan Foortse, head of European property investments at APG Asset Management, sees partnerships such as this as very suitable for investing in real estate. ‘Over the years we have worked with Goodman in several other jurisdictions. They are a leading owner, manager and operator of logistic real estate. We are pleased to extend our relationship with Goodman to the UK. We are equally pleased to be working with CPPIB in the Partnership. We believe this Partnership is well-placed to enter the UK market, and we look forward to building up a high-quality portfolio of logistics assets for our clients.’