CPPIB increases exposure to Hong Kong logistics

Canada Pension Plan Investment Board (CPPIB) has invested HK$1.94 billion ($249 million) to acquire an interest in Goodman Hong Kong Logistics Partnership (GHKLP).

GHKLP is one of Goodman’s flagship logistics partnerships, with the largest portfolio of high-quality, modern logistics properties in Hong Kong.

The partnership has seen strong performance since its inception in 2006, with positive economic and market fundamentals such as limited supply of quality industrial real estate in Hong Kong combined with growing demand from international retailers and distribution companies, supporting consistent market outperformance.

“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,” said Jimmy Phua, managing director, head of real estate investments Asia, CPPIB.

At Sept. 30, 2017, GHKLP had total assets of HK$28.7 billion ($3.68 billion) invested across 13 assets, including a 50 percent interest in Goodman Interlink that is co-owned with CPPIB under a 50/50 joint venture.

“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,” said Phua.