BCI makes credit agreement, CPPIB ups allocation to U.S. logistics firm

The British Columbia Investment Management Corp. is making a credit agreement with Knightsbridge Capital Group, an asset-based lender in Vancouver.

“As BCI builds out our direct lending business for our clients, we value working with successful local businesses such as Knightsbridge Capital Group,” said Chris Beauchemin, vice-president of fixed income and foreign exchange at BCI.

The agreement is for a $100-million operating facility to allow Knightsbridge to leverage one of its asset-based funds, Maynbridge Capital Inc.

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“We are very excited to have found a significant local partner to help fuel the growth of our unique lending platform,” said Dean Shillington, president and founder of Knightsbridge Capital Group and Maynbridge Capital, in a press release.

In other investment news, the Canada Pension Plan Investment Board is increasing its equity commitment in Goodman North American Partnership, a U.S.-based logistics enterprise.

Together, the CPPIB and Goodman Group are putting forward US$2.5 billion, raising the capital allocated to US$5.5 billion. The partnership’s equity structure works on a 55/45 basis, with US$1.4 billion new capital coming from Goodman and the remaining US$1.1 billion from the CPPIB.

The partnership was established in 2012 with the aim of investing in high-quality logistics and industrial property in key North American markets.

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“With the rapid growth of e-commerce in the U.S. and ongoing supply-chain modernization, fundamentals in the logistics sector continue to strengthen, particularly in strong urban markets, reflected by record sustained rent growth and occupancy levels,” said Peter Ballon, managing director and global head of real estate at the CPPIB, in a press release. “Through GNAP, CPP Investments is well positioned to capitalize on these structural shifts.”