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Goodman and CPPIB expand their relationship with a targeted US$890 million partnership

Monday, October 8, 2012

Goodman Group (Goodman or Group) and the Canada Pension Plan Investment Board (CPPIB) are pleased to announce the launch of a new logistics and industrial partnership called the Goodman North America Partnership (GNAP). Goodman and CPPIB have targeted an equity amount of US$890 million on a 55/45 basis, representing US$490 million and US$400 million respectively.

GNAP's investment strategy is to target investment in logistics and industrial property in key North American markets. The focus will initially be on development led opportunities, with value-add and stabilised asset acquisitions to be considered over time in line with market conditions.

Greg Goodman, CEO of Goodman said, "GNAP further builds on our relationship with CPPIB and reinforces our strategy of matching third party capital with our development pipeline, enabling us to enter North America in a measured way. We will continue to work closely with our global customers to deliver high quality logistics and industrial space, consistent with our prudent development approach."

This transaction represents CPPIB's first direct investment in U.S. industrial real estate, a sector which is expected to benefit from a lack of new supply in recent years and continued growth in global trade. It will contribute to CPPIB's strategy of building a portfolio of high quality assets that will deliver stable returns over the long-term.

Peter Ballon, CPPIB's Vice President, Real Estate Investments - Americas said, "This latest partnership broadens CPPIB's successful relationship with Goodman, with whom we hold investments in Australia, Hong Kong and China.  We believe that this joint venture will provide significant opportunities to invest in prime logistics and industrial locations across key American markets."

As announced on 20 June, Goodman has entered into an agreement with California based Birtcher Development and Investments (Birtcher), focused on the development of, and investment  in, prime quality logistics and industrial facilities in key locations across North America. Opportunities will be sought in the key West Coast logistics hubs of Los Angeles (Inland Empire), San Francisco and Seattle, with New York, New Jersey and Philadelphia to be targeted on the East Coast. Other key logistics hubs based around inland ports, intermodals and tier one ports will also be considered.

 
Brandon Birtcher, CEO of the management company, Goodman Birtcher North America said, "With a significant undersupply of high quality logistics space in these regions there is a compelling opportunity to meet the strong customer demand that exists for A-grade 'big box' facilities."

"Our entry into North America reinforces Goodman's position as a leading global logistics property group. With the establishment of our operating platform in North America and strength of our capital partner relationships, over time we see this region growing to be one of Goodman's largest markets in terms of assets under management," Mr. Goodman added.

About Goodman

For more information visit  www.goodman.com or  www.us.goodman.com

About CPP Investment Board

For more information, please visit www.cppib.ca.

About Birtcher Development & Investments

For more information, please visit www.us.goodman.com