Australia's Goodman, Canada Pension recapitalize China JV

GCLH, which is 80%-backed by Canada Pension Plan and 20%-backed by Goodman, was launched in August 2009 with about $180 million under management. The JV looks to own and develop logistics assets in China.

In addition to the new funding, the parties also announced the signing of a $100 million five-year facility with Credit Agricole Corporate and Investment Bank and ING Bank, which will also be used to drive new opportunities in China.

"The initiatives we are announcing today provide our GCLH joint venture with significant capacity to take advantage of new opportunities in line with the execution of our China growth strategy," Goodman Group CEO Greg Goodman said in a statement. "Significantly, the initiatives also demonstrate the ongoing support of both equity and debt capital partners for our managed fund platform."

"CPPIB's additional equity investment reflects the strength of our relationship with Goodman and the significant opportunities arising from the strong demand for modern, efficient logistics space in China," Canada Pension Plan's Senior Vice President of Real Estate Investments Graeme Eadie added. "It ensures that GCLH will continue to perform well over the long term through its participation in the rapid growth of this market."

Goodman noted that the added capital will help it to grow its Greater China investments to RMB19 billion ($3 billion) over the next five years, from RMB1.9 billion ($300 million).

Goodman claims 20 completed properties in Greater China and a number of projects in the pipeline in cities including Shanghai, Chengdu, Langfang, Tianjin and Suzhou.

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• Topics
• Australasia
• Real estate
• Greater China
• China
• Australia
• Real estate
• Joint Venture