News: GMG Australia's Goodman, Canada's CPPIB add $1.75 bln to China logistics investment

HONG KONG, Aug 23 (Reuters) - Australian property developer Goodman Group Pty Ltd (GMG) and the Canada Pension Plan Investment Board (CPPIB) on Thursday said they have committed an extra $1.75 billion of equity to their Chinese logistics partnership to further expand in China.

The funds, 80 percent of which will come from CPPIB, will take the partners' total equity commitment to $5 billion.

Goodman China Logistics Partnership was established in 2009 to invest in logistics properties across mainland China. Its portfolio comprises 33 properties with 2.5 million square metres of logistics space.

Its investment increase is the latest in China's logistics industry which is experiencing a boom in demand for warehousing and delivery from e-commerce firms such as Alibaba Group Holding Ltd BABA.N and JD.com Inc JD.O .

China Logistics Property Holdings Co Ltd (CNLP) 1589.HK , backed by JD.com, on Wednesday said it plans to set up funds with industry partners to co-invest in warehousing projects to ease capital pressure and double its domestic market share.

"We currently have a number of acquisition opportunities in due diligence," Kristoffer Harvey, chief executive of Goodman Greater China, said in a statement on Thursday. "This equity commitment increase provides us with significant firepower to capitalise on these and other opportunities."

He also said the partnership firm aims to double its portfolio to over 5 million square metres in the medium term.

CPPIB said it has invested C$28 billion ($21.45 billion) so far in China and will increase its exposure over the long term.

($1 = 1.3055 Canadian dollars)

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JD.com-backed China Logistics Property eyes co-investments to 

expand, cut expenses

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