The Canada Pension Plan Investment Board has committed an additional $400 million US to a joint venture set up to invest in Chinese logistics facilities.
It's the latest foreign buying spree for the investing arm of the Canada Pension Plan as it continues to diversify its huge portfolio.
The joint venture — Goodman China Logistics Holding — was set up three years ago to invest in logistics properties in mainland China.
The CPPIB partnered with the Goodman Group to increase the overall equity allocation to its Chinese venture to $1 billion US. In addition to the new CPPIB investment, the Goodman Group put up an additional $100 million US.
"CPPIB’s additional equity investment reflects our belief that China’s logistics sector will continue to grow as demand for modern, efficient logistics facilities is being fuelled by a rising domestic demand for consumer goods," said Mark Machin of CPPIB Asia in a release.
Earlier this month, CPPIB and Goodman Group announced another partnership to invest up to $890 million US in logistics and industrial properties in key U.S. markets.
The CPP fund was worth $165.8 billion at the end of June. It has increasingly turned to infrastructure investments overseas to lessen volatility and counter lacklustre equity market returns.