The Canada Pension Plan Investment Board and Goodman Group, a property investor, have added $1.75 billion to their joint venture that invests in Chinese logistics assets.
Set up in 2009, the Goodman China Logistics Partnership has now accumulated a total equity commitment of $5 billion. In the latest cash injection, the investment board supplied $1.4 billion and Goodman Group added $350 million.
“The fundamentals of the Chinese logistics sector remain compelling, driven by domestic consumption growth in China, including e-commerce which underpins the strong demand for prime logistics facilities,” said Jimmy Phua, head of real estate investments, Asia, at the Canada Pension Plan Investment Board.
The partnership's portfolio currently includes 33 properties including 2.5 million square metres of space with current occupancy levels of 99%.
Logistics assets, including warehouses, terminals and ports, are an increasingly popular target for real estate investors.
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