CPP Investments shifts strategy with major exits in North American and Chinese real estate ventures
Canada Pension Plan Investment Board (CPP Investments) is set to generate approximately US$2.2bn in net proceeds from its stake in the Goodman North American Partnership (GNAP).
According to its press release, this reflects the partnership's strong performance and success since its establishment. Goodman and CPP Investments continue to collaborate across various global 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 allow CPP Investments to redeploy capital towards new investment opportunities as its portfolio evolves with global market dynamics.
GNAP, formed in 2012 as a 45-55 partnership between CPP Investments and Australia's Goodman Group, focused on high-quality logistics and industrial properties in key North American markets.
Greg Goodman, CEO of Goodman Group, stated, “We are proud of the success we've had with CPP Investments in GNAP across our global partnerships. We look forward to maintaining our strong working relationship across asset classes and geographies.”
In a separate transaction, CPP Investments has agreed to sell its 49 percent interest in four real estate joint venture projects with China's Longfor Group Holdings to an affiliate of Dajia Insurance Group.
The sale is expected to yield approximately $235m in net proceeds before closing adjustments.
The projects include retail malls and associated office and rental housing properties in Shanghai, Suzhou, Chengdu, and Chongqing.
CPP Investments initially partnered with Longfor in 2014, expanding the relationship to include additional projects.
Despite this sale, the two entities will continue to maintain several joint ventures in China.
The transaction remains subject to customary closing conditions and regulatory approvals.
