The Canada Pension Plan Investment Board is committing $1.3 billion to a logistics fund involved in projects in major urban centres in Japan.
The GLP Development Partners IV fund, managed by the Singapore-based GLP, will focus on developing modern logistics facilities in large-scale projects around Tokyo and Osaka. So far, the fund has raised $3.6 billion of its $4.7-billion target.
In a press release, Giles Chow, managing director and head of real estate in North Asia at the CPPIB, said the investment organization was drawn to the fund because of its potential for growth. “The positive outlook for Japan’s logistics sector underpinned by the rapid growth in e-commerce has laid a solid foundation for the success of the new venture. As a long-term investor, we are confident that working with a trusted and experienced partner such as GLP will generate sustainable returns over time for CPP contributors and beneficiaries.”
The CPPIB is also planning to consolidate several of its energy assets with a Brazilian asset management company.
After combining several of their Brazil-based energy assets, the CPPIB and Votorantim SA intend to found a publicly traded company, which will be listed on the Brasil, Bolsa, Balcão stock exchange, the largest in South America.
In order to consolidate the energy assets, an existing joint venture between the CPPIB and Votorantim Energia will acquire both companies’ equity shares in a variety of renewable energy assets, including electricity producer and several wind and solar assets.
The company will have a capacity of of 2.3 GW in hydro power and 1.0 GW in wind power. The CPPIB will also increase its investment in the joint venture by about $340 million.
In a press release, Bruce Hogg, managing director and head of the sustainable energies group at the CPPIB, said the plan would create a well-diversified platform primed to grow alongside the Brazilian renewable energy sector. “In addition, the new combined company provides an attractive way to grow our successful partnership with Votorantim.”
In other investment news, the Caisse de dépôt et placement du Québec is acquiring about 30,000 hectares of pine forest in the southeastern U.S.
In partnership with Alabama-based forestry business, the Westervelt Co., the land, which is located in Georgia, will be used in a new sustainable timberland management initiative. It was previously owned and managed by the Georgia-based Superior Pine Products Co.
In a press release, Emmanuel Jaclot, executive vice-president and head of infrastructure at the Caisse, said the organization chose to partner with Westervelt because of its history of innovative environmental stewardship. “Working forests are unique assets and we believe they will become of increasing importance in the fight against climate change and the transition to a greener economy.”