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Goodman and CPP Investments increase equity commitment to US$5.5 billion in U.S. logistics Partnership

Wednesday, 12 February 2020
  • Partnership established in 2012 continues to build scale with high-quality assets
  • Significant capacity for property acquisitions and developments

Goodman Group (Goodman or the Group) and Canada Pension Plan Investment Board (CPP Investments) have committed an additional US$2.5 billion of equity to the Goodman North American Partnership (GNAP or Partnership), increasing their total equity commitment to US$5.5 billion. Consistent with the Partnership’s 55/45 equity structure, Goodman will allocate US$1.4 billion and CPP Investments US$1.1 billion.

GNAP was established in 2012 to invest in high-quality logistics and industrial property in key North American markets. With an initial commitment of US$890 million, the Partnership’s assets have grown to approximately US$3 billion. With this increased equity allocation and allowing a moderate amount of debt, total investment capacity in GNAP has increased up to US$7.5 billion, providing significant capacity for property acquisitions and developments.

Anthony Rozic, Chief Executive Officer, Goodman North America, said, “The Partnership continues to build scale in select U.S. logistics markets, including Los Angeles, Southern California’s Inland Empire and the New Jersey industrial markets, totaling over 16 million square feet of assets under management. Our portfolio is concentrated in key urban locations close to large consumer populations and allows our customers to meet growing consumer demands for faster last-mile delivery. Having acquired over 200 acres in key infill locations in the last six months, the Partnership has the momentum, expertise and capital to continue acquiring and developing new properties in our target markets.” 

Peter Ballon, Managing Director, Global Head of Real Estate, CPP Investments, said, “With the rapid growth of e-commerce in the U.S. and ongoing supply-chain modernization, fundamentals in the logistics sector continue to strengthen, particularly in strong urban markets, reflected by record sustained rent growth and occupancy levels. Through GNAP, CPP Investments is well positioned to capitalize on these structural shifts.”