Canada Pension Plan Investment Board (CPPIB) is buying a stake in Goodman Hong Kong Logistics Partnership (GHKLP) for HKD1.94bn (€212m).

GHKLP was established in 2006 by Goodman, an Australia-headquartered global logistics specialist.

CPPIB said the partnership had experienced strong performance since then and was benefitting from limited supply of quality industrial real estate in Hong Kong and growing demand from international retailers and distribution companies.

Jimmy Phua, managing director and head of real estate investments for Asia at CPPIB, said: “There is tremendous opportunity for growth across the logistics sector in Hong Kong, which benefits from growing domestic consumption and the city’s strategic position as a gateway into China.

“We are pleased to deepen our excellent global relationship with Goodman through this investment in GHKLP, while at the same time increasing our exposure to the fast-growing logistics sector.

“E-commerce will be one of the major drivers of growth in the logistics sector in Asia, and Hong Kong is in a prime geographic position to benefit as more players enter the market.”

At the end of September, GHKLP had 13 assets valued at HK$28.7bn, including a 50% interest in Goodman Interlink, which is co-owned with CPPIB under a 50/50 joint venture.