CPPIB increases China logistics JV to $2b
Goodman Group and the Canada Pension Plan Investment Board have announced a $500 million increase in their equity allocation to their joint venture to invest in logistics properties in China.
CPPIB contributed approximately $400 million and Goodman contributed $100 million to the Goodman China Logistics Holding joint venture. With this increase, the partners have allocated a combined $2 billion to invest in and develop prime logistics space across China.
Goodman China Logistics Holding was formed in 2009 with an initial equity commitment of $300 million. The latest announcement marks the fourth equity increase by the partners since the joint venture’s inception.
As of Sept. 30, Goodman China Logistics Holding has invested in 27 logistics projects in 10 Chinese markets including Shanghai, Beijing, Tianjin, Kunshan, Chengdu, Suzhou and Jiaxing. The portfolio has an occupancy rate of 97 percent with a strong customer base.