Canada Pension Plan Investment Board and Sydney-based Goodman Group announced Thursday they would lift their equity commitments to the vehicle they established in 2009 to invest in logistics facilities in China by a combined $1.75 billion, to $5 billion.
In line with the Goodman China Logistics Partnership's equity split of 80% for the Toronto-based C$366.6 billion ($280.6 billion) pension fund and 20% for Goodman, CPPIB will allocate an additional $1.4 billion in new commitments while Goodman will boost its commitments by $350 million.
Jimmy Phua, CPPIB's Hong Kong-based head of real estate investments Asia, said in a news release that with the continued growth of domestic consumption and e-commerce in China, "the fundamentals of the Chinese logistics sector remain compelling."
Suyi Kim, CPPIB's senior managing director and head of Asia-Pacific, noted in the release that CPPIB is looking to increase its long-term exposure to China. The latest commitments to the pension fund's logistics partnership with Goodman will add to existing investments on the mainland that come to C$28 billion, she said.
