Goodman Group and Canada Pension Plan Investment Board (CPP Investments) have committed an additional $2.5bn of equity to the Goodman North American Partnership (GNAP), thereby increasing their total equity commitment to $5.5bn. Goodman will allocate $1.4bn and CPP Investments $1.1bn, in accordance with the agreed 55/45 Partnership’s equity structure.
GNAP was established in 2012 to invest in logistics and industrial property in North American markets. With an initial commitment of $890m, the Partnership’s assets have grown to approximately $3bn. With this increased equity allocation, total investment capacity in GNAP has increased up to $7.5bn, providing capacity for future property acquisitions and developments.
Anthony Rozic, Chief Executive Officer, Goodman North America, said: “The Partnership continues to build scale in markets including Los Angeles, Southern California’s Inland Empire and the New Jersey industrial markets, totalling over 16m sq ft of assets under management. Our portfolio is concentrated in key urban locations close to large consumer populations, allowing them to meet demand for faster last-mile delivery. We have acquired over 200 acres in key locations in the last six months, and there is scope to continue acquiring and developing new properties in our target markets.”
Peter Ballon, Managing Director, Global Head of Real Estate, CPP Investments, said: “With the rapid growth of e-commerce in the U.S. and ongoing supply-chain modernisation, fundamentals in the logistics sector continue to strengthen as confirmed by record sustained rent growth and occupancy levels in strong urban markets. Through GNAP, we believe to be well positioned to capitalise on these opportunities.”
Source: Goodman Group
