CANADA/JAPAN - The Canada Pension Plan Investment Board (CPPIB) and Global Logistic Properties (GLP) have formed a joint venture to invest in the country's logistics network.
Both will invest $250m in the joint venture, known as the Japan Development Fund, over the next three years and will focus on building multi-tenant and build-to-suit facilities mainly in the areas around Tokyo and Osaka. The fund has already earmarked a site in Tokyo for its first potential development, GLP said.
The firm, Asia's largest provider of logistics facilities, added the fund was open-ended with a long-term investment horizon and has a targeted leverage of 50% loan-to-value.
CPPIB senior vice-president of real estate investments Graeme Eadie said: "The Japan Development Fund provides CPPIB an entry into Japan's logistics facilities market and represents our first direct real estate investment in this country. The growing demand in Japan for modern third party logistics facilities provides an attractive investment opportunity for us. We look forward to partnering alongside GLP who has a proven track record and is aligned with our strategy to develop and hold these assets over the long term."
GLP deputy chairman and executive committee chairman Jeffrey Schwartz said: "Developing logistics facilities in Japan is an attractive use of capital and we are extremely pleased to launch our Japan development program. The Fund will be GLP's exclusive vehicle for logistics development in Japan.
"We are seeing solid demand for logistics development in Japan driven by our strong customer relationships, solid track record and deep experience. We are delighted to have formed a long-term strategic partnership with CPPIB, a leading global investment manager, which will enable GLP to earn solid returns on its capital while managing risk."
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