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Goodman and CPPIB increase equity commitment to their China Partnership by US$500 million to US$1.5 billion

Thursday, 11 July 2013

Goodman Group (Goodman or Group) and Canada Pension Plan Investment Board (CPPIB) are pleased to announce a US$500 million increase to their equity allocation to Goodman China Logistics Holding (GCLH), with US$400 million contributed by CPPIB and US$100 million by Goodman.

GCLH was formed in 2009 to invest in high quality logistics properties in prime locations across mainland China. As of 30 June 2013, GCLH has invested in 17 logistics projects in 7 Chinese markets including Shanghai, Beijing, Tianjin, Kunshan, Chengdu, Suzhou and Jiaxing. The portfolio has an occupancy rate of 98.2% with a strong customer base.

The pace of growth experienced by GCLH to date has resulted in the commitment of almost all of the US$1 billion already allocated by CPPIB and Goodman to the joint venture (JV). Given the strong pipeline of new projects available to GCLH, the JV partners have allocated a further US$500 million of new equity to enable it to capitalise on these future growth opportunities. Today’s announcement brings the total equity allocated to GCLH to US$1.5 billion.

Greg Goodman, Group CEO said, “We are delighted to be further building on our well established global relationship with CPPIB. The increased equity allocation of US$500 million will help to fund the continued growth of our China platform through a number of identified development projects for high quality logistics space in the major Chinese markets.”

Graeme Eadie, Senior Vice-President and Head of Real Estate Investments, CPPIB said, “Building on the strong momentum of the JV, CPPIB’s additional equity investment provides further opportunity for acquisitions and is another step in our long-term partnership with Goodman. The fundamentals of the Chinese logistics sector remain compelling, with a visible pipeline for future projects fuelled by the demand for modern and efficient logistics facilities, rising domestic consumption and the growth of the Chinese e-commerce market.”

Philip Pearce, Goodman Managing Director Greater China added, “The ongoing demand for prime logistics space in China presents Goodman with a range of opportunities given our well established platform, quality people, the penetration of our footprint into key logistics markets and access to over 4 million sqm of land. Consistent with this, in recent months we have signed over 100,000 sqm of new leases across projects in Tianjin, Kunshan and Shanghai, and we are currently developing approximately 500,000 sqm of prime logistics facilities in a number of key markets. The strong customer demand we are experiencing will see our development book increase to around 800,000 sqm over the next 12 months.”


-Ends-
 
For further information, please contact:

Goodman
Besy Leung
Marketing Director, Asia
Tel + 852 2249 3149

Citigate Dewe Rogerson (on behalf of Goodman Group)
Jasmine Yap 
Co-Managing Director
Tel +852 3103 0108

CPPIB

Linda Sims
Director, Media Relations
Tel +1 416 868 8695
Email lsims@cppib.com


About Goodman

For more information, please go to www.goodman.com

About Canada Pension Plan Investment Board

For more information, please visit  www.cppib.com.