The Canada Pension Plan Investment Board (CPPIB) has joined hands with global logistics platform GLP to launch GLP Japan Income Fund (GLP JIF), the largest private open-ended logistics fund in Japan, according to an announcement.
GLP JIF already has 280 billion yen ($2.6 billion) in assets under management at inception, comprising of assets that include six LEED Gold and Platinum certified projects.
GLP JIF is managed by GLP, while CPPIB re-commits 25 billion yen into this new fund from its exit proceeds of the GLP Japan Development Fund (GLP JDV I), an earlier 50:50 joint venture between CPPIB and GLP formed in 2011 that focused on building modern, large-scale logistics facilities in Japan.
This joint venture was subsequently expanded multiple times, including the launch of a second Japan development venture in 2016, CPPIB said in the announcement. The exit of GLP JDV I delivered 48 billion yen of net proceeds to the Canadian pension fund by the end of August 2020.
“The strong fundamentals in the Japanese logistics market continue to make this a compelling investment opportunity for long-term investors. We are pleased to continue our strategic relationship with GLP, one of our key global real estate partners, while recycling capital for other compelling investment opportunities,” Jimmy Phua, managing director and head of Asia real estate investments at CPPIB said in the Friday statement.
The Canadian pension had total assets worth C$434.4 billion ($331 billion) as of June 30, 2020.
The pension board has been investing in the real estate sector of Asia, through capital commitments in funds such as PAG’s Secured Capital Real Estate Partners VI, or partnering with Dutch pension administrator APG and Hong Kong-listed ESR Cayman for two investment JVs in South Korea worth several billion US dollars of capital. In addition, CPPIB’s individual realty assets span across North Asia, Hong Kong, Australia and India.
Meanwhile, GLP is Asia’s largest warehouse operator with $89 billion in assets under management across China, India, Japan, Brazil, Europe and the US.