Goodman Group, Canada Pension Plan Investment Board and APG Asset Management have added £900m to their UK logistics partnership.
Each firm has added £300m of equity to investment vehicles in the UK, targeting the logistics sector.
The Goodman UK Partnership was set up in 2015 with £1bn of investment capacity, seeded with an initial £200m from each partner.
It has so far deployed more than £381m across 13 investments, with a gross added value of £478m.
The new equity will be used to expand its portfolio, with particular focus on sustainable properties located along key arterial routes across the South East and M1/M6 corridors. The partnership is also seeking last-mile locations, particularly around Greater London.
Stephen Young, director of 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 CPPIB, 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.”
Max Remmers, senior portfolio manager for real estate at APG, said: “With this capital increase 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.”
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