CPPIB forms Japanese development JV
The Canada Pension Plan Investment Board has formed a 50-50 joint venture with Singapore-based Global Logistic Properties, its second with GLP, to invest in logistics properties in Japan. GLP Japan Development Venture II has a total equity commitments of ¥100 billion ($873 million) and is expected to reach $2 billion over three years.
"The demand for modern logistics facilities in Japan remains very strong, and we are delighted to have the opportunity to partner with CPPIB once again,” said Ming Mei, CEO of GLP, in a statement. “The market landscape has evolved since the launch of our first Japan development fund more than four years ago, and we feel it is a good time to lock in long-term capital."
The venture’s investment strategy allows it to sell assets to GLP J-REIT, which the firms expect will provide flexibility and attractive returns. GLP JDV II is expected to start construction of new developments in 2016.