Goodman and CPPIB Increase Commitment to China Partnership to US$1 billion
SYDNEY, Aug. 29, 2012 /PRNewswire-Asia/ -- Goodman Group (Goodman or Group) and Canada Pension Plan Investment Board (CPPIB) are pleased to announce that they have increased their equity allocation to Goodman China Logistics Holding (GCLH) by an additional US$500 million, 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 June 30, 2012, GCLH has invested in 12 logistics projects in 6 Chinese markets: Shanghai, Beijing, Tianjin, Kunshan, Chengdu and Suzhou. The portfolio has an occupancy rate of 100% with a strong tenant base.
The new equity commitment announced today doubles the total equity allocated to GCLH to US$1 billion, reflecting the platform's increasing acquisition and development momentum.
Greg Goodman, Group CEO said, "Demand for high quality logistics facilities in the major Chinese markets continues to be strong. In the past three months, we have concluded approximately 100,000 sqm of leasing transactions across projects in Shanghai, Kunshan, Beijing and Tianjin. We believe the undersupply of logistics space will continue to underpin demand from our major customers over the medium-term. Our footprint in China is expanding rapidly and we now have in excess of 4 million sqm of land available in key strategic locations, including land secured and under negotiation. We have customer demand to facilitate over 1 million sqm of space, with approximately 400,000 sqm of developments in progress currently and the ability to commence over 800,000 sqm of new logistics facilities in the next 12 months."
Mark Machin, President, CPPIB Asia Inc. said, "CPPIB's additional equity investment reflects our belief that China's logistics sector will continue to grow as demand for modern, efficient logistics facilities is being fuelled by a rising domestic demand for consumer goods. Together with Goodman, we expect that GCLH will continue to perform well over the long term through its participation in the rapid growth of this market."
Mr. Goodman added, "This announcement further builds on the strength of our global relationship with CPPIB. Our highly experienced local team of 315 in Greater China will work closely with our customers to deliver modern, high quality logistics space across the key markets."
For more information please visit www.goodman.com.
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SOURCE Goodman Group