CPPIB ups U.K. logistics allocation, PSP invests in Paris real estate

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Seine in paris with eiffel tower in autumn time © Iakov Kalinin /123RF Stock PhotosThe Canada Pension Plan Investment Board is allocating an additional £300 million of equity to investment vehicles targetting the U.K.’s logistics sector.

The investment is taking place via the Goodman U.K. partnership, which was established in 2015, with Goodman Group and APG Asset Management each allocating the same amount. The CPPIB has entered similar partnerships with Goodman in North America and China.

The additional commitment will be used to expand the portfolio of sustainable logistics and industrial properties along key arterial routes, as well as last-mile locations, particularly around Greater London, noted a press release.

“Structural changes in the retail market and logistics supply chain, together with an acceleration of online consumerism, are driving strong demand for quality logistics space to service major population centres in the U.K.,” said Tom Jackson, managing director and head of U.K. real estate at the CPPIB, in the release.

“We are delighted to be expanding our successful partnership with Goodman and APG to capitalize on the supportive sector fundamentals and increase our exposure to this asset class, ultimately delivering long-term value for CPP contributors and beneficiaries.”

In other investment news, the Public Sector Pension Investment Board and real estate developer Tishman Speyer Properties are acquiring Espace Lumière in Paris from a fund managed by Invesco Real Estate.

According to a release, the building will be repurposed following the departure of French television network Canal+, which has occupied the space since it opened in 2000.

The acquisition is the latest Paris real estate transaction for the PSP and Tishman Speyer. In 2018, the two organizations sold the Tour Pacific office building to Société Générale Insurance Group for an undisclosed amount.

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