CPP Investments realigns its portfolio with major transactions in North America and China
Canada Pension Plan Investment Board (CPP Investments) is set to generate approximately US$2.2bn in net proceeds from its investment in the Goodman North American Partnership (GNAP).
Established in 2012, GNAP was a 45-55 partnership between CPP Investments and Australia's Goodman Group, aimed at investing in high-quality logistics and industrial properties in key North American markets.
Max Biagosch, global head of Real Assets and head of Europe for CPP Investments, said, “The success of GNAP has provided us with an opportunity to lock in strong returns for the CPP Fund and is emblematic of our ongoing partnership with Goodman.”
He added that the proceeds would allow CPP Investments to pursue new opportunities as its portfolio grows and evolves in alignment with global market trends.
Greg Goodman, CEO of Goodman Group, praised the collaboration, stating, “We are proud of the success we've had with CPP Investments in GNAP across our global partnerships.”
He expressed optimism about continuing their strong working relationship across asset classes and geographies.
In a separate announcement, CPP Investments has agreed to sell its 49 percent interest in four joint venture real estate projects with Longfor Group Holdings (Longfor) to an affiliate of Dajia Insurance Group.
The sale, which includes retail malls along with connected office and rental housing properties in Shanghai, Suzhou, Chengdu, and Chongqing, is expected to yield approximately $235m in net proceeds, pending closing adjustments.
CPP Investments first partnered with Longfor in 2014 and expanded the collaboration through additional developments.
Despite this sale, the two entities will retain several joint ventures in China.
The transaction is subject to customary closing conditions and regulatory approvals.
