The Canada Pension Plan Investment Board (CPPIB) has launched a new logistics and industrial partnership with Australia-based Goodman Group.
The Goodman North America Partnership (GNAP) will see Goodman and CPPIB target an equity amount of US$890 million on a 55/45 basis, representing US$490 million and US$400 million, respectively.
GNAP’s investment strategy is to target investment in logistics and industrial property in key North American markets. The focus will initially be on development-led opportunities, with value-add and stabilized asset acquisitions to be considered over time in line with market conditions.
The transaction represents CPPIB’s first direct investment in U.S. industrial real estate, a sector that is expected to benefit from a lack of new supply in recent years and continued growth in global trade. CPPIB and Goodman already hold joint investments in Australia, Hong Kong and China.
Goodman recently entered into an agreement with California-based Birtcher Development and Investments, focused on the development of, and investment in, prime quality logistics and industrial facilities across North America. Opportunities will be sought in Los Angeles, San Francisco and Seattle on the west coast, with New York, New Jersey and Philadelphia to be targeted in the east.
Other key logistics hubs based around inland ports, intermodals and tier one ports will also be considered.