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.
“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.