Goodman Group and Canada Pension Plan Investment Board (CPP Investments) overnight committed equity of US$2.5 billion to its Goodman North American Partnership (GNAP).
Established in August, 2012, with an initial investment of US$890 million – and now with assets under management valued at US$3 billion – the fund seeks to buy and build high quality logistics and industrial real estate in key North American markets.
Consistent with the Partnership’s equity structure, Goodman will contribute US$1.4 billion – or 55 per cent – to the recently announced capital raising, with CPP Investments tipping in US$1.1 billion.
With this allocation and allowing a moderate amount of debt, GNAP chief executive officer, Anthony Rozic, said, the group’s total investment capacity increases to US$7.5 billion.
This provides “significant” capital for property acquisitions and developments, he added.
“The Partnership continues to build scale in select US logistics markets, including Los Angeles, Southern California’s Inland Empire and..New Jersey, totalling over 16 million square feet [1.49 million square metres] of assets under management.
“Our portfolio is concentrated in key urban locations close to large consumer populations and allows our customers to meet growing consumer demands for faster last-mile delivery.
“Having acquired over 200 acres [81 hectares] in key infill locations in the last six months, the Partnership has the momentum, expertise and capital to continue acquiring and developing new properties in our target markets”.
Peter Ballon, CPP Investments’ managing director and global head of Real Estate, said with the rapid growth of e-commerce in the US and ongoing supply-chain modernisation, “fundamentals in the logistics sector continue to strengthen, particularly in strong urban markets, reflected by record sustained rent growth and occupancy levels”.