Canada Pension Plan Investment Board (CPPIB) has acquired an interest in Goodman Hong Kong Logistics Partnership (GHKLP), owner of a portfolio of modern warehouse properties in Hong Kong. CPPIB paid about $320 million for the stake in GHKLP, which as of September 2017 had investments valued at about $4.7 billion in 13 assets, including a 50 percent interest in Goodman Interlink, which is co-owned with CPPIB. CPPIB said the deal gives it more exposure to the “fast growing logistics sector.”
Canada Pension Plan Investment Board invests HK$1.94 billion in Goodman Hong Kong Logistics Partnership
Toronto, Canada/Hong Kong (December 7, 2017): Canada Pension Plan Investment Board (CPPIB) has invested HK$1.94 billion (C$320 million) to acquire an interest in Goodman Hong Kong Logistics Partnership (GHKLP or Partnership). GHKLP is one of Goodman’s flagship logistics partnerships, with the largest portfolio of high quality, modern logistics properties in Hong Kong.
The Partnership has seen strong performance since its inception in 2006, with positive economic and market fundamentals such as limited supply of quality industrial real estate in Hong Kong combined with growing demand from international retailers and distribution companies, supporting consistent market outperformance.
“There is tremendous opportunity for growth across the logistics sector in Hong Kong, which benefits from growing domestic consumption and the city’s strategic position as a gateway into China,” said Jimmy Phua, Managing Director and Head of Real Estate Investments Asia, CPPIB. “We are pleased to deepen our excellent global relationship with Goodman through this investment in GHKLP, while at the same time increasing our exposure to the fast growing logistics sector,” he added.
At 30 September 2017, GHKLP had total assets of HK$28.7 billion invested across 13 assets, including a 50% interest in Goodman Interlink that is co-owned with CPPIB under a 50/50 JV.
“E-commerce will be one of the major drivers of growth in the logistics sector in Asia and Hong Kong is in a prime geographic position to benefit as more players enter the market,” Mr. Phua added.
About Canada Pension Plan Investment Board
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 20 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, Mumbai, New York City, São Paulo and Sydney, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At September 30, 2017, the CPP Fund totalled C$328.2 billion.
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