The Canada Pension Plan Investment Board (CPPIB) has acquired from Goodman Group 50% of the shares in Hong Kong Interlink, an industrial facility currently under development in Tsing Yi, Hong Kong.
The gross purchase price of this interest is approximately CAD285 million. CPPIB is making an equity commitment of approximately CAD205 million and assuming debt of approximately CAD80 million to purchase the 50% interest.
Interlink is a 2.4 million square foot, high quality, industrial facility that is situated in a prime industrial location in the heart of Hong Kong’s logistics hub and within close proximity to Hong Kong’s international airport. Interlink is scheduled for completion in January 2012.
Graeme Eadie, CPPIB’s Senior Vice President, Real Estate Investment, says: "This is CPPIB’s first direct real estate investment in Hong Kong and a rare opportunity to acquire a significant interest in a prime industrial asset at the centre of Asia’s largest transportation and logistics hub. Interlink is well positioned to attract leading, global tenants seeking a large-scale, modern facility in the Hong Kong area, where the supply of industrial space is severely constrained and rental demand is consistently strong."
Eadie adds: "Our investment in Interlink is aligned with our global real estate investment strategy of acquiring assets that can be expected to deliver stable returns over the long-term and working closely with strong, reputable partners who have deep local knowledge and experience."
The Goodman Hong Kong Logistics Fund will own the other 50% of the Interlink project. CPPIB has a long-standing relationship with Goodman Group, one of the world’s largest listed fund managers specialising in industrial and business properties.
