HONG KONG-The Toronto-based Canada Pension Plan Investment Board has invested $250 million into its venture with the Goodman Group, called Goodman China Logistics Holding, based here. The investment, and another $100 million in financing, will be used to grow Goodman’s total investment in China from $300 million to $3 billion, according to Sydney-based firm.
The venture was formed in 2009 to own and develop logistics assets in China. The venture, of which the pension board has an 80% stake, now has an equity commitment of $500 million and owns four total properties. The venture also signed a $100 million, five-year facility with Credit Agricole Corporate, Investment Bank and ING Bank NV.
Greg Goodman, CEO of the self-named firm, said in a statement that the additional capital will help the venture take advantage of new opportunities. “The bank facility highlights that despite the challenging global economic environment, banks continue to lend to well-managed property groups,” he said.
Goodman itself has 20 completed properties in China, with 16 million square feet total. The company has a number of projects underway in Shanghai and Beijing, with development projects in the pipeline in Chengdu, Langfang, Tianjin and Suzhou.
Philip Pearce, managing director of Goodman Greater China, said in the statement that his firm has increased its land bank to 21.5 million square feet. “We are confident that China will become one of the largest logistics markets in the world, with increasing demand for international grade, high-efficiency warehousing space,” he said.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
