Canada Pension Plan Investment Board (CPP Investments) has committed JPY 110 billion (C$1.3 billion) to the newly established GLP Japan Development Partners IV (GLP JDP IV).
GLP JDP IV, which has raised JPY 311 billion (C$3.6 billion) so far and is targeting JPY 412 billion (C$4.7 billion) of total equity commitments, will focus on developing modern logistics facilities in Japan, in particular large-scale projects in the Greater Tokyo and Greater Osaka areas.
When fully deployed, GLP JDP IV is expected to reach over JPY 1 trillion (C$11.5 billion) in assets under management.
“We are pleased to extend our longstanding partnership with GLP and build on the success of the previous Japan development JVs. The positive outlook for Japan’s logistics sector underpinned by the rapid growth in e-commerce has laid a solid foundation for the success of the new venture,” said Gilles Chow, Managing Director, Head of Real Estate North Asia, CPP Investments.
“As a long-term investor, we are confident that working with a trusted and experienced partner such as GLP will generate sustainable returns over time for CPP contributors and beneficiaries,” he added.
Following the inaugural Japan Development Venture in 2011, the two parties have established two subsequent Japan development ventures in 2016 and 2018. The series of GLP Japan-focused logistics programs have delivered in excess of 2.7 million square metres of developments since its inception.