CPPIB, GLP form 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 assets in Japan. GLP Japan Development Venture II has total equity commitments of ¥100 billion (US$873 million) and is expected to reach US$2 billion over three years.
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.
GLP JDV II will be seeded with GLP Nagareyama, a large-scale logistics park in the greater Tokyo area with 315,900 square metres of total gross floor area. GLP Nagareyama is GLP’s largest development project in the country and is expected to be constructed in phases, at a total investment cost of ¥59 billion (US$515 million).
GLP JDV II is a follow-on venture to GLP Japan Development Venture I, which was launche