The Canada Pension Plan Investment Board (CPPIB) has joined forces with Global Logistics Properties Ltd. (GLP), the overseas logistics unit of the Government of Singapore Investment Corp., to invest in logistics facilities in Japan.
The joint venture, to be known as the Japan Development Fund, will see each partner invest $250 million over a three-year period to develop storage and distribution centres in Japan. The investment represents CPPIB’s first direct investment in the Japanese property market.
“The Japan Development Fund provides CPPIB an entry into Japan’s logistics facilities market and represents our first direct real estate investment in this country,” said Graeme Eadie, senior vice-president, real estate investments, with CPPIB. “The growing demand in Japan for modern third-party logistics facilities provides an attractive investment opportunity for us. We look forward to partnering alongside GLP, which has a proven track record and is aligned with our strategy to develop and hold these assets over the long term.”
GLP, a leader in modern logistics facilities in China and Japan that is listed on the Singapore Exchange, said it has identified a site in Tokyo for the partnership’s first development.
“The Fund will be GLP’s exclusive vehicle for logistics development in Japan. We are seeing solid demand for logistics development in Japan driven by our strong customer relationships, solid track record and deep experience,” commented Jeffrey H. Schwartz, deputy chair and chair of the executive committee of GLP.