Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Australia's Goodman, Canada's CPPIB add $1.75 bln to China logistics investment

Published 2018-08-23, 12:18 a/m
Updated 2018-08-23, 12:20 a/m
© Reuters.  Australia's Goodman, Canada's CPPIB add $1.75 bln to China logistics investment

© Reuters. Australia's Goodman, Canada's CPPIB add $1.75 bln to China logistics investment

HONG KONG, Aug 23 (Reuters) - Australian property developer Goodman Group Pty Ltd GMG.AX and the Canada Pension Plan Investment Board (CPPIB) on Thursday said they have committed an extra $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 $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 metres of logistics space.

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 (NYSE:BABA) Group Holding Ltd BABA.N and JD.com Inc JD.O .

China Logistics Property Holdings Co Ltd (CNLP) 1589.HK , 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. 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 capitalise on these and other opportunities."

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

CPPIB said it has invested C$28 billion ($21.45 billion) so far in China and will increase its exposure over the long term. ($1 = 1.3055 Canadian dollars)

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ JD.com-backed China Logistics Property eyes co-investments to expand, cut expenses

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.