Canada Pension Plan Investment Board (CPP Investments) has announced a new partnership with GLP, a global investment manager in logistics, real estate, infrastructure, finance and related technologies, for the GLP Japan Income Fund (GLP JIF), the largest private open-ended logistics fund in Japan.
CPP Investments said its partnership with GLP was first established in 2011 through the formation of GLP Japan Development Fund (GLP JDV I), a 50:50 joint venture 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.
”At the end of August 2020, CPP Investments successfully exited the investment in GLP JDV I, receiving approximately JPY 48 billion (C$590 million) of net proceeds,” said the company in a press release. ”Following the disposition, CPP Investments will re-commit JPY 25 billion (C$307 million) of the proceeds into the newly established GLP JIF.”
“The transactions mark a significant milestone for CPP Investments’ real estate investment program in Japan,” said Jimmy Phua, Managing Director and Head of Real Estate Investments, Asia, CPP Investments. “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.”
GLP JIF was established with JPY 280 billion (C$3.4 billion) assets under management at inception and consists of some of the best logistics assets in the country, including six LEED Gold and Platinum certified projects.
