Skip to main content

Australian property developer Goodman Group Pty Ltd and the Canada Pension Plan Investment Board (CPPIB) on Thursday said they have committed an extra US$1.75-billion of equity to their Chinese logistics partnership to further expand in China.

The funds, 80 percent of which will come from CPPIB, will take the partners’ total equity commitment to US$5-billion.

Goodman China Logistics Partnership was established in 2009 to invest in logistics properties across mainland China. Its portfolio comprises 33 properties with 2.5 million square meters of logistics space.

Story continues below advertisement

Its investment increase is the latest in China’s logistics industry which is experiencing a boom in demand for warehousing and delivery from e-commerce firms such as Alibaba Group Holding Ltd. and JD.com Inc.

China Logistics Property Holdings Co. Ltd. (CNLP), backed by JD.com, on Wednesday said it plans to set up funds with industry partners to co-invest in warehousing projects to ease capital pressure and double its domestic market share.

“We currently have a number of acquisition opportunities in due diligence,” Kristoffer Harvey, chief executive of Goodman Greater China, said in a statement on Thursday. “This equity commitment increase provides us with significant firepower to capitalize on these and other opportunities.”

He also said the partnership firm aims to double its portfolio to over 5 million square meters in the medium term.

CPPIB said it has invested $28-billion so far in China and will increase its exposure over the long term.

Report an error
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter