The Canada Pension Plan Investment Board (CPPIB) has partnered with Goodman Group and Dutch pension fund manager APG Asset Management in the launch of the Goodman UK Logistics Partnership. The partnership is expected to bring over £1 billion (about $1.99 billion) of investment capacity to logistics and industrial development opportunities in the United Kingdom. The initial portfolio is made up of two developments in logistics locations close to London and Birmingham, reflecting a combined 590,000 square feet.
Goodman, Canada Pension Plan Investment Board and APG Launch GBP 1bn UK Logistics Partnership
Toronto, Canada/ London, UK (October 8, 2015): Goodman Group (Goodman), Canada Pension Plan Investment Board (CPPIB) and APG Asset Management (APG) are pleased to announce the establishment of the Goodman UK Logistics Partnership (Partnership).
· New Partnership brings over £1 billion of investment capacity for high-quality UK logistics and industrial development opportunities
· Initial portfolio comprises two developments in proven logistics locations close to London and Birmingham, for a combined 590,000 sq. ft.
· Targeting further high-quality logistics and industrial property opportunities across the investment spectrum
With a flexible strategy in place, the Partnership will be able to undertake a wide range of investment styles, including development, value-add and core investment. Each investor will commit
£200 million for a 33% interest in the Partnership, providing the vehicle with a combined initial equity commitment of £600 million and an investment capacity in excess of £1 billion.
Goodman Group CEO, Greg Goodman, said: “We welcome APG and CPPIB into this new partnership, which continues to demonstrate our successful capital partnering approach and the strong support we have from leading global investor groups.”
Andrea Orlandi, Managing Director, Head of Real Estate Investments Europe, CPPIB, said: “This investment fits well with our long-term investment horizon as we expect the demand for high-quality logistics space to continue growing significantly. In addition, this is an excellent opportunity for us to deepen our existing relationships with Goodman and APG, and consolidates Goodman as a truly global real estate partner for CPPIB.”
Robert-Jan Foortse, Head of European Property Investments at APG Asset Management sees partnerships such as this as very suitable for investing in real estate. “Over the years we have worked with Goodman in several other jurisdictions. They are a leading owner, manager and operator of logistic real estate. We are pleased to extend our relationship with Goodman to the UK. We are equally pleased to be working with CPPIB in the Partnership. We believe this Partnership is well-placed to enter the UK market, and we look forward to building up a high-quality portfolio of logistics assets for our clients.”
About Goodman Group (ASX: GMG)
Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom, North America and Brazil. Goodman Group, comprised of the stapled entities Goodman Limited, Goodman Industrial Trust and Goodman Logistics (HK) Limited, is the largest industrial property group listed on the Australian Securities Exchange and one of the largest listed specialist fund managers of industrial property and business space globally.
Goodman’s global property expertise, integrated own+develop+manage customer service offering and significant fund management platform ensures it creates innovative property solutions that meet the individual requirements of its customers, whilst seeking to deliver attractive long-term returns for investors. In Europe, Goodman has offices in the UK, Germany, the Netherlands, Belgium, Luxembourg, France, Spain, Poland, Czech Republic, Hungary and Slovakia.
For more information visit www.goodman.com
Canada Pension Plan Investment Board (CPPIB) is a professional investment management
organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2015, the CPP Fund totalled C$268.6 billion. For more information about CPPIB, please visit www.cppib.com.
About APG Asset Management N.V.
APG Asset Management N.V. is a Dutch pension fund asset manager in the Netherlands. For its pension fund clients and their 4.5 million active and retired participants from the public and private sectors representing over 30% of all collective pension schemes in the Netherlands, APG Asset Management N.V. manages pension assets of more than €400 billion. https://www.apg.nl/en/apg-as-asset-manager.
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