Under the deal, Goodman and CPPIB have targeted an equity amount on a 55/45 basis, representing $490 million and $400 million, respectively. As part of the investment strategy, Ballon says the partners will focus on value-add and development-led opportunities. “There is a lack of supply, and we want to create a long, stable portfolio of industrial properties,” he adds.

The JV has previously teamed up to invest in China and Australia’s industrial sectors, and are known internationally for their global industrial track record. In 2009, the CPPIB committed up to $150 million with Goodman on the development of logistics facilities in Mainland China. After, the JV established the Goodman Australia Development Fund to acquire a range of pre-committed development opportunities in Melbourne, Sydney and other Australian cities. By March 2011, the CPPIB further grew the relationship by participating in a Goodman-led consortium to privatize a $2.5 billion ING Industrial Fund, with CPPIB committing $600 million to the transaction for a 42.5% share. The pension board also committed $1,630 million (HKD) in acquiring a 50% interest in the Interlink industrial development located in Tsing Yi, Hong Kong, a 2.4 million-square-foot industrial facility completed this year.

In a statement, Greg Goodman, CEO of Goodman, says the team will continue to “work closely with our global customers to deliver high quality logistics and industrial space, consistent with our prudent development approach.”

Goodman, comprised of entities such as Goodman Limited and Goodman Industrial Trust, is the largest industrial property group listed on the Australian Securities Exchange, and operates in 16 countries with 32 offices around the world.