Goodman Group  and Canada Pension Plan Investment Board (CPPIB) increased by US$500 million their equity allocation to their Goodman China Logistics Holding (GCLH) joint venture, with US$400 million contributed by CPPIB and US$100 million by Goodman.

 

With this increase, the JV partners have allocated a combined US$2 billion to invest in and develop prime logistics space across mainland China. GCLH was formed in 2009 with an initial equity commitment of US$300 million. This marks the fourth equity increase by the JV partners since GCLH’s inception and will enable GCLH to further expand its portfolio in China’s logistics property market.

 

As of September 30 2014, GCLH 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% with a strong customer base.

 

Greg Goodman, Group CEO said, “CPPIB is an important global partner for Goodman and we are delighted to further build on our well-established relationship. With this increase in equity allocation, our China platform will be able to expand its footprint in one of our biggest growth markets, where we continue to see strong demand for high quality logistics space.”

 

Jimmy Phua, managing director, head of real estate investments Asia, CPPIB, said,“CPPIB’s additional equity reflects the success of the JV to date and the longstanding partnership we have with Goodman. The fundamentals of the Chinese logistics and e-commerce sectors remain compelling, which underpin the growth in demand for prime logistics facilities.”

 

Goodman currently has about 800,000 sqm of developments underway in a number of key cities across China. It has a landbank of 4.3 million sqm, which will enable the group to meet its development plans in China for the next three years.