The Canada Pension Plan Investment Board (CPPIB) has allocated an additional $500 million to its industrial joint venture with Sydney-based logistics developer Goodman Group. The Goodman North American Partnership (GNAP) now totals $2 billion, representing $1.1 billion from Goodman, or a 55 percent interest, and $900 million from CPPIB for the remaining 45 percent interest.
GNAP's investment strategy is to assemble a portfolio of institutional-quality, income-producing, modern logistics and warehouse facilities in major US markets, including California, New Jersey and Pennsylvania. GNAP’s current portfolio consists of 6.5 million square feet, and the venture is pursuing a pipeline of development opportunities with a total potential developable gross leasable area of approximately 8.6 million square feet.
“CPPIB's additional allocation will further expand our industrial portfolio in North America, as well as broaden our longstanding global relationship with Goodman,” said Peter Ballon, managing director and head of real estate investments in the Americas for CPPIB, in a statement. “The US industrial sector remains attractive as demand for logistics and warehouse space has been increasing over the past several years and the US macro environment is showing positive momentum.”
To date, GNAP has invested in six warehouse development projects throughout California, including GLC Oakland, GLC Rancho Cucamonga, Commerce Center Eastvale, GLC Fontana, GLC Compton and GLC Santa Fe Springs.
GNAP first launched in October 2012 with a $490 million investment from Goodman and a $400 million commitment from CPPIB, which represented the Canadian pension’s first foray into US industrial real estate. CPPIB previously teamed up with Goodman on logistics platforms in Australia, Hong Kong and China.