The CPP Investment Board (CPPIB) has raised its equity allocation to Goodman China Logistics Holding (GCLH) by US$400 million.
CPPIB’s partner, Australian-based Goodman Group, has increased its investment by $100 million. With this latest announcement, the partners have now allocated US$1.5 billion to the joint venture.
“The fundamentals of the Chinese logistics sector remain compelling, with a visible pipeline for future projects fuelled by the demand for modern and efficient logistics facilities, rising domestic consumption and the growth of the Chinese e-commerce market,” says Graeme Eadie, senior vice-president and head of real estate investments.
GCLH was formed in 2009 to invest in logistics properties in prime locations across mainland China.
At the end of June, GCLH has invested in 17 logistics projects in seven Chinese markets including Shanghai, Beijing, Tianjin, Kunshan, Chengdu, Suzhou and Jiaxing. The portfolio has an occupancy rate of 98.2% with a strong customer base.
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