The Canada Pension Plan Investment Board is investing $320 million for a stake in Goodman Hong Kong Logistics Partnership.

The partnership, which was founded in 2006, held over $4.7 billion in assets as of Sept. 30. This includes a 50 per cent stake in Hong Kong-based warehouse and distribution development Goodman Interlink, which is co-owned by the CPPIB.

Read: Ivanhoé Cambridge enters into British logistics property venture

“There is tremendous opportunity for growth across the logistics sector in Hong Kong, which benefits from growing domestic consumption and the city’s strategic position as a gateway into China,” said Jimmy Phua, managing director and head of real estate investments for Asia at the pension fund, in a news release.

He added that the CPPIB is pleased to increase its exposure to the fast-growing logistics sector. In March, the pension fund invested alongside Ivanhoé Cambridge and real estate logistics specialist LOGOS to develop and acquire modern logistics facilities in Singapore and Indonesia.

“E-commerce will be one of the major drivers of growth in the logistics sector in Asia and Hong Kong is in a prime geographic position to benefit as more players enter the market,” added Phua.

Copyright © 2018 Transcontinental Media G.P. Originally published on benefitscanada.com

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