The CPPIB has acquired a 50% interest in Hong Kong Interlink from Goodman Group. Interlink is a 2.4-million-square-foot industrial facility currently under development near Hong Kong’s international airport. The facility is scheduled for completion in 2012.

CPPIB paid approximately $285 million for the stake in the project and will make an equity commitment of $205 million and assume debt of $80 million.

“This is CPPIB’s first direct real estate investment in Hong Kong and a rare opportunity to acquire a significant interest in a prime industrial asset at the centre of Asia’s largest transportation and logistics hub. Interlink is well positioned to attract leading global tenants seeking a large-scale, modern facility in the Hong Kong area, where the supply of industrial space is severely constrained and rental demand is consistently strong,” said Graeme Eadie, CPPIB’s senior vice-president, real estate investment.

Eadie added that the Interlink purchase aligns with CPPIB’s global real estate strategy of investing in assets that will deliver stable long-term returns, and working with local partners who have knowledge and experience in the areas where investments are located. The Goodman Hong Kong Logistics Fund will own the other 50% of the Interlink project.

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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