Tuesday, 13 December 2011
Goodman Group (Goodman or Group) is pleased to announce that Canada Pension Plan Investment Board (“CPPIB”) and Goodman have increased their equity commitment in the 80/20 joint venture, Goodman China Logistics Holding (“GCLH”). The additional capital increases the combined equity commitment to the GCLH joint venture to a total of US$500 million, of which 80% is represented by CPPIB, who has committed an additional US$250 million.The joint venture was initially formed by Goodman and CPPIB in August 2009 to own and develop logistics assets in Mainland China.
The additional capital will help to facilitate Goodman’s strategy of growing its investments in Greater China over the next five years to RMB19 billion (US$3 billion), from RMB1.9 billion (US$0.3 billion) today. The Group currently has 20 completed properties in Greater China offering 1.5 million sqm of gross lettable area. It has a number of projects underway in Shanghai and Beijing, with development projects in the pipeline in Chengdu, Langfang, Tianjin and Suzhou.Mr Philip Pearce, Managing Director of Goodman Greater China, said, “We are confident that China will become one of the largest logistics markets in the world, with increasing demand for international grade, high efficiency warehousing space. As a specialist provider of high quality logistics space, we are well positioned to take advantage of opportunities having secured a number of well located land sites. This has grown our land bank to in excess of 2 million sqm, and is consistent with our strategy to continue increasing our commitment and resources in China, both directly and through our joint venture partners.”