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CPPIB boosts investment in Chinese warehousing venture

The CPPIB initially spent about $147-million in August, 2009, for the Chinese property joint venture involving logistics properties, essentially warehouses and distribution terminals, linked to expanding Chinese trade.

Aly Song/Reuters/Aly Song/Reuters

The Canada Pension Plan Investment Board is injecting another $250-million (U.S.) into its 80-per-cent-owned warehousing joint venture, Goodman China Logistics Holding.

The joint venture also announced Tuesday it has signed a $100-million five-year loan deal with creditors.

The CPPIB's partner in the deal is Australia's Goodman Group, which it also partners with on other real estate ventures in Asia and Australia.

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The investment announced Tuesday brings the partners' total investment to $500-million.

The group says the investments will be used to drive new growth opportunities in mainland China.

"CPPIB's additional equity investment reflects the strength of our relationship with Goodman and the significant opportunities arising from the strong demand for modern, efficient logistics space in China," said Graeme Eadie, the pension plan's senior vice-president of real estate investments.

"It ensures that [Goodman China]will continue to perform well over the long term through its participation in the rapid growth of this market."

The CPPIB initially spent about $147-million in August, 2009, for the Chinese property joint venture involving logistics properties, essentially warehouses and distribution terminals, linked to expanding Chinese trade.

The group currently has 20 completed properties in Greater China and a number of projects under way in Shanghai and Beijing, with development projects in the pipeline in Chengdu, Langfang, Tianjin and Suzhou.

The CPPIB invests the funds not required to pay benefits under the Canada Pension Plan.

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