Goodman, CPP Investments and APG increase equity commitment to U.K. logistics partnership by £900 million

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  • UK Partnership established in 2015 has deployed over £381 million across 13 investments with a current Gross Asset Value of £478 million
  • Significant additional capacity for property acquisitions and developments

LONDON and SYDNEY, Australia, Nov. 5, 2020 /CNW/ – Goodman Group, Canada Pension Plan Investment Board (CPP Investments) and APG Asset Management N.V. (APG) have each allocated an additional £300 million of equity to investment vehicles in the UK, targeting the logistics sector.

The expansion follows the success of the Goodman UK Partnership (GUKP) established in 2015 to invest in prime industrial and logistics properties on a long term basis.

Stephen Young, Director – Investment Management, Goodman UK, said “The Partnership sees us continuing our investment in strategic locations that meet the rising demand for modern, well-located logistics properties. Building on the strength of the UK portfolio to date, this increased commitment provides us with the equity to support the future development and acquisition of best-in-class urban logistics space where supply is limited and demand is driven by consumers.”

The additional commitment will be used to further expand the portfolio of high-quality, sustainable logistics and industrial properties strategically located on key arterial routes across the South East and M1/M6 corridors, as well as last-mile locations, particularly around Greater London.

Tom Jackson, Managing Director, Head of UK Real Estate, CPP Investments, said “Structural changes in the retail market and logistics supply chain, together with an acceleration of online consumerism, are driving strong demand for quality logistics space to service major population centres in the UK. We are delighted to be expanding our successful partnership with Goodman and APG to capitalise on the supportive sector fundamentals and increase our exposure to this asset class, ultimately delivering long-term value for CPP contributors and beneficiaries.”

Goodman Group is one of CPP Investments’ longest standing and largest global partners in real estate with partnerships established in Australia, Brazil, China, Hong Kong and the US.

Speaking of the increased equity commitment, Max Remmers, Senior Portfolio Manager Real Estate, APG, commented, “With this capital increase we continue to increase our allocation to this resilient segment of the property market, thereby focusing on supply-constrained infill locations which are benefiting from structural trends such as growing online penetration, supply chain reconfiguration and urbanisation. We are pleased to expand our partnership with Goodman and CPP Investments, which has proven to be successful in the UK as well as in other regions around the world. Goodman has been instrumental in developing and operating a significant part of APG’s industrial and logistics exposure globally.”

About Goodman

Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom, North America and Brazil. Goodman Group, comprised of the stapled entities Goodman Limited, Goodman Logistics (HK) Limited and Goodman Industrial Trust, is the largest industrial property group listed on the Australian Securities Exchange and one of the largest listed specialist investment managers of industrial property and business space globally.

Goodman’s global property expertise, integrated own+develop+manage customer service offering and significant investment management platform ensures it creates innovative property solutions that meet the individual requirements of its customers, while seeking to deliver sustainable long-term returns for its investors.

For more information: https://uk.goodman.com/

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that invests around the world in the best interests of the more than 20 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments in public equities, private equities, real estate, infrastructure and fixed income are made by CPP Investments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2020, the Fund totalled C$434.4 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.

About APG Group NV

APG is the largest pension provider in the Netherlands; its approximately 3,000 employees provide executive consultancy, asset management, pension administration, pension communication and employer services. APG performs these services on behalf of (pension) funds and employers in the sectors of education, government, construction, cleaning and window cleaning, housing associations, energy and utility companies, sheltered employment organizations, and medical specialists. APG manages approximately €536 billion (August 2020) in pension assets for the pension funds in these sectors. APG works for approximately 22,000 employers, providing the pension for one in five families in the Netherlands (about 4.7 million participants). APG has offices in Heerlen, Amsterdam, Brussels, New York and Hong Kong.

For more information: https://apg.nl/en/

SOURCE Canada Pension Plan Investment Board