The Canada Pension Plan Investment Board (CPPIB) and an Australian property investment firm, Goodman Group, have increased their equity allocation to a joint venture in the Chinese property market by US$500 million.
The CPPIB is contributing an additional US$400 million and Goodman is kicking in the other US$100 million to their Goodman China Logistics Holding (GCLH) joint venture. The firms report that, with this increase, they have allocated a combined US$2 billion to invest in and develop prime logistics space across mainland China.
The joint venture was formed in 2009 with an initial equity commitment of US$300 million. This is the fourth equity increase since it was created. The firms report that, as of Sept. 30, GCLH has invested in 27 logistics projects in 10 Chinese markets.
“CPPIB’s additional equity reflects the success of the JV to date and the longstanding partnership we have with Goodman. The fundamentals of the Chinese logistics and e-commerce sectors remain compelling, which underpin the growth in demand for prime logistics facilities,” said Jimmy Phua, managing director, head of real estate investments Asia at CPPIB.