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Goodman and Canada Pension Plan Investment Board increase China equity commitment to US$5 billion

Thursday, 23 August 2018

Goodman Group (Goodman or the Group) and Canada Pension Plan Investment Board (CPPIB) have committed an additional US$1.75 billion of equity to the Goodman China Logistics Partnership (GCLP or Partnership), increasing their total equity commitment to US$5 billion. The additional equity will be made on an 80:20 basis, with CPPIB allocating US$1.4 billion and Goodman US$350 million, consistent with the Partnership’s equity structure.

GCLP was established in 2009 to invest in high-quality logistics properties in prime locations across mainland China. With a development-led strategy centred on major gateway cities in China, the Partnership has organically grown to a portfolio of 33 high-quality logistics properties comprising 2.5 million square metres of modern logistics space, with current occupancy levels of 99%.

Greg Goodman, Chief Executive Officer of Goodman Group, said, “With its growing middle class, significant e-commerce activity and rapid advancements in technology, China is a core growth area for our business. Our increased commitment alongside our long-term partner in CPPIB, will provide sufficient equity to leverage opportunities in the market.”

Jimmy Phua, Managing Director, Head of Real Estate Investments Asia, CPPIB, said, “The fundamentals of the Chinese logistics sector remain compelling, driven by domestic consumption growth in China, including e-commerce which underpins the strong demand for prime logistics facilities. CPPIB’s additional equity reflects the success of GCLP to date and an opportunity to expand our longstanding global partnership with Goodman.”

Kristoffer Harvey, Chief Executive Officer of Goodman Greater China added, “We currently have a number of acquisition opportunities in due diligence. These equity commitment increase provides us with significant firepower to capitalise on these and other opportunities. It also enables us to develop the Partnership’s land bank and to grow the portfolio to more than 5 million square metres in the medium term.”

Suyi Kim, Senior Managing Director & Head of Asia Pacific, CPPIB, said, “Since 2008, when we established a local Hong Kong office, Asia has been a key investment market for CPPIB. With C$28 billion invested in China today, we are committed to further increasing our exposure over the long term. CPPIB is well-positioned as a strong investment partner in the Asia-Pacific region given our long-term focus and our local team of experienced investment professionals.”

With easy access to major logistics hubs in Shanghai and Jiangsu, Goodman Qingpu Centre is one of the high-quality logistics properties of GCLP

Goodman Qingpu Centre received the LEED Gold Certification awarded by the Green Building Council in August 2018

About Goodman

Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom, North America and Brazil. Goodman Group, comprised of the stapled entities Goodman Limited, Goodman Industrial Trust and Goodman Logistics (HK) Limited, is the largest industrial property group listed on the Australian Securities Exchange and one of the largest listed specialist investment managers of industrial property and business space globally.

Goodman’s global property expertise, integrated own+develop+manage customer service offering and significant investment management platform ensures it creates innovative property solutions that meet the individual requirements of its customers, while seeking to deliver long-term returns for investors.

About Canada Pension Plan Investment Board

Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 20 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments.

Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, São Paulo and Sydney, CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At June 30, 2018, the CPP Fund totalled $366.6 billion. For more information about CPPIB, please visit www.cppib.com or follow us on LinkedIn, Facebook or Twitter.

For further information:

Goodman CPPIB 
Kristoffer Harvey Darryl Konynenbelt
CEO, Greater China Director, Global Media Relations
Goodman Asia Limited Tel +1 416 972 8389
Tel +852 2249 3100 dkonynenbelt@cppib.com
   
Jasmine Yap  
Co-CEO, Asia Pacific  
Citigate Dewe Rogerson  
Tel +852 3103 0108 / 9325 3363