Goodman, CPP Investments and APG have announced plans to increase equity commitment to their UK logistics partnership by allocating an additional £300m in investment.
The Goodman UK Partnership was established in 2015 and has deployed over £381m across 13 investments with a current gross asset value reported at £478m. The partnership predominantly aimed at investing in prime industrial and logistics properties on a long term basis.
The additional commitments of the firm will be reportedly used to further expand the portfolio of high-quality, sustainable logistics and industrial properties. All of which have been strategically located along key routes across the South East and M1/M6 corridors, as well as last-mile locations, particularly around Greater London.
Stephen Young, director and investment management at 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.”
Tom Jackson, managing director and head of UK real estate at 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 global partners in real estate with partnerships established in Australia, Brazil, China, Hong Kong and the US.
Max Remmers, senior portfolio manager real estate for APG, commented: “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.”
He added: “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.”