CPPIB acquires stake in Goodman Hong Kong Logistics Partnership for $248m

People look out from the waterfront in the Tsim Sha Tsui district as buildings across the Victoria Harbour stand illuminated at night in Hong Kong, China, on Tuesday, Aug. 30, 2016. Photographer: Anthony Kwan/Bloomberg

Canada Pension Plan Investment Board (CPPIB) has invested HK$1.94 billion ($248.4 million) to acquire an interest in Goodman Hong Kong Logistics Partnership (GHKLP or Partnership).

GHKLP is one of Goodman’s flagship logistics partnerships, with the largest portfolio of high-quality, modern logistics properties in Hong Kong. It has seen strong performance since its inception in 2006, with positive economic and market fundamentals.

At 30 September 2017, GHKLP had total assets of HK$28.7 billion ($3.675 billion) invested in 13 assets, including a 50 per cent interest in Goodman Interlink that is co-owned with CPPIB under a 50/50 JV.

CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. It is headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, São Paulo and Sydney.

Factors such as a limited supply of quality industrial real estate in Hong Kong, combined with growing demand from international retailers and distribution companies, have supported consistent market outperformance, according to a media release.

In a statement, Jimmy Phua, Managing Director, Head of Real Estate Investments Asia, CPPIB, said, “There is tremendous opportunity for growth across the logistics sector in Hong Kong, which benefits from growing domestic consumption and the city’s strategic position as a gateway into China.”

According to Phua, CPPIB expects e-commerce to be one of the major drivers in the logistics sector, with Hong Kong being a prime geographic position to benefit as more players enter the market.

The growth of e-commerce has served to reshape supply chains worldwide. While room for expansion of traditional exports in Hong Kong is limited, the proliferation of e-commerce across different sectors has generated opportunities for logistics in Greater China, which is enjoying strong growth in the logistics sector; online shopping in China has a penetration rate of 10.7 per cent.

In November, international express service major DHL invested HK$2.9 billion ($371 million) to expand the capacity of its Central Asia Hub (CAH) in Hong Kong by 50 per cent, in order to cater to rapidly growing international trade demands. in the region and around the world.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.