Canada Pension Plan Investment Board (CPPIB) has allocated an additional US$500 million to the Goodman North American Partnership (GNAP), a joint venture formed in 2012 between CPPIB and Goodman Group to invest in logistics and warehouse facilities in major U.S. markets. CPPIB’s allocation to GNAP now totals US$900 million, representing a 45 percent interest, and Goodman’s allocation now totals US$1.1 billion, representing a 55 percent interest. To date, GNAP has committed to six development projects located in California and is actively pursuing opportunities in the same state, as well as in New Jersey and Pennsylvania.
Canada Pension Plan Investment Board Allocates Additional US$500 Million to North American Industrial Partnership With Goodman Group
TORONTO, ONTARIO–(Marketwired – Aug. 14, 2014) – Canada Pension Plan Investment Board (CPPIB) today announced it has allocated an additional US$500 million to the Goodman North American Partnership (GNAP), a joint venture formed in 2012 between CPPIB and Goodman Group (Goodman). CPPIB’s aggregate allocation to GNAP now totals US$900 million representing a 45% interest in the joint venture, and Goodman’s aggregate allocation now totals US$1.1 billion representing a 55% interest.
GNAP’s investment strategy is to assemble a portfolio of institutional-quality, income-producing, modern logistics and warehouse facilities in major U.S. markets. To date, GNAP has committed to six development projects located in California with a total potential gross leasable area of 6.5 million square feet. In addition, GNAP is actively pursuing a pipeline of development opportunities in its target markets of California, New Jersey and Pennsylvania with a total potential developable gross leasable area of approximately 8.6 million square feet.
The six logistics and warehouse developments GNAP has committed to are:
•GLC Oakland – 375,000-square-foot Class-A warehouse distribution facility recently completed in Oakland, California, adjacent to the Oakland International Airport.
•GLC Rancho Cucamonga – two warehouse distribution facilities totalling up to 1.6 million square feet in Rancho Cucamonga, California, 40 miles west of Los Angeles, in the Inland Empire West submarket.
•Commerce Center Eastvale – three logistics warehouses providing in excess of 2.5 million square feet located in Eastvale, California, 50 miles west of Los Angeles, in the Inland Empire West submarket.
•GLC Fontana – 640,000-square-foot warehouse distribution facility located in Fontana, California, 50 miles west of Los Angeles, in the Inland Empire West submarket.
•GLC Compton – 100,000-square-foot distribution facility in Compton, California, a prime infill location within the South Bay submarket of Los Angeles.
•GLC Santa Fe Springs – three warehouse distribution facilities totalling up to 1.2 million square feet located in Santa Fe Springs, California, a prime infill location within the Mid-Counties submarket in Los Angeles.
“CPPIB’s additional allocation will further expand our industrial portfolio in North America as well as broaden our longstanding global relationship with Goodman,” said Peter Ballon, Managing Director & Head of Real Estate Investments – Americas. “The U.S. industrial sector remains attractive as demand for logistics and warehouse space has been increasing over the past several years and the U.S. macro environment is showing positive momentum.”
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 Canadian 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, 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, 2014, the CPP Fund totalled C$226.8 billion of which C$24.6 billion represented real estate investments. For more information about CPPIB, please visit www.cppib.com.
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