IRVINE, CALIF. — Goodman Group and the Canada Pension Plan Investment Board (CPPIB) have launched Goodman North America Partnership (GNAP), a logistics and industrial joint venture with a targeted equity amount of $890 million.
“This latest partnership broadens CPPIB’s successful relationship with Goodman, with whom we hold investments in Australia, Hong Kong and China,” says Peter Ballon, vice president of real estate investments in America for Toronto-based CPPIB. “We believe that this joint venture will provide significant opportunities to invest in prime logistics and industrial locations across key American markets.”
The partnership will initially focus on development-led opportunities, with value-add and stabilized assets to be considered over time. Targeted markets include Los Angeles, San Francisco, Seattle, New York, New Jersey and Philadelphia, however, other key logistics hubs based around inland ports, intermodals and tier-one ports will also be considered.
“GNAP further builds on our relationship with CPPIB and reinforces our strategy of matching third-party capital with our development pipeline, enabling us to enter North America in a measured way,” says Greg Goodman, CEO of Sydney, Australia-based Goodman. “We will continue to work closely with our global customers to deliver high-quality logistics and industrial space, consistent with our prudent development approach.”
Goodman also recently entered into an agreement with California-based Birtcher Development and Investments focused on development and investment in prime quality logistics and industrial facilities in key locations across the U.S.
The partnership represents CPPIB’s first direct investment in U.S. industrial real estate. As of March 31, 2012, the CPPIB’s fund totaled $161.6 billion in Canadian dollars, or approximately $162.3 billion in American dollars.
Goodman is an integrated property group with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom and North America. The company has a total of $20.3 billion in assets under management.
— Savannah Duncan