Canada Pension Plan Investment Board (CPPIB) and Vancouver-based QuadReal are partnering with GLP, the Singapore-headquartered logistics and technology company in an EUR 2b logistics fund.
The capital raised via GLP Continental Europe Development Partners I (CDP I) will be invested primarily in logistics development.
Target countries are Germany, France, Italy, Spain, Netherlands and Belgium.
When fully invested, the vehicle is expected to have EUR2b of assets under management.
CPPIB will be committing EUR 450m. In total, the partners are committing EUR 1b of equity.
After being fully invested, GLP’s Europe AUM is estimated to touch $7.2b, a marked increase from end-Sept’s $4.9b.
According to Yang, CDP I’s chief investment officer, the fund is an expansion of their footprint in UK, France, Germany and Netherlands after the acquisition of Gazeley.
Gazeley was a UK-based European logistics business sold by Brookfield in 2017.
According to Yang, the rationale for going up the risk spectrum, given the development strategy, is to be have exposure across the risk spectrum across a variety of markets. This includes both emerging and developed markets.
CDP I is CPPIB’s first direct logistics investment in continental Europe. Two years ago, the Canadian investor launched a GBP 1b UK logistics partnership with the Dutch pension manager APG Asset Management and Sydney-based logistics property developer and fund manager Goodman Group.