GCLH was formed in 2009 to invest in high-quality logistics properties in prime locations across mainland China. As of June 30, 2013, GCLH has invested in 17 logistics projects in 7 Chinese markets, including Shanghai, Beijing, Tianjin, Kunshan, Chengdu, Suzhou and Jiaxing. The portfolio has an occupancy rate of 98.2 percent with a strong customer base.
The pace of growth experienced by GCLH to date has resulted in the commitment of almost all of the $1bn already allocated by CPPIB and Goodman to the joint venture. Given the strong pipeline of new projects available to GCLH, the partners have allocated a further $500m of new equity to enable it to capitalise on these future growth opportunities. Today's announcement brings the total equity allocated to GCLH to US$1.5 billion.
Graeme Eadie, senior vice president and head of real estate investments at CPPIB said, "The fundamentals of the Chinese logistics sector remain compelling, with a visible pipeline for future projects fueled by the demand for modern and efficient logistics facilities, rising domestic consumption and the growth of the Chinese e-commerce market."
Philip Pearce, Goodman's managing director for Greater China, added, "The ongoing demand for prime logistics space in China presents Goodman with a range of opportunities given our well established platform, quality people, the penetration of our footprint into key logistics markets and access to over 4 million square meters of land. Consistent with this, in recent months we have signed over 100,000 square meters of new leases across projects in Tianjin, Kunshan and Shanghai, and we are currently developing approximately 500,000 square meters of prime logistics facilities in a number of key markets. The strong customer demand we are experiencing will see our development book increase to around 800,000 square meters over the next 12 months."
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