CPP Investments will sell its 45 per cent stake in the Goodman North American Partnership (GNAP), a $6-billion (all figures US unless otherwise noted) venture which owns industrial and logistics properties across North America.

The buyer has not been identified.

CPP Investments says, in its Friday announcement, it expects to receive approximately $2.2 billion in net proceeds from the sale, “crystallizing strong returns over the life of the investment.”

CPP has been partnered with Australia-based Goodman Group in the investment since 2012.

"The success of GNAP has provided us with an opportunity to lock-in strong returns for the CPP fund and is emblematic of our ongoing partnership with Goodman," said Max Biagosch, global head of real assets and head of Europe for CPP Investments, in the announcement.

"The proceeds from this transaction also give us the ability to redeploy capital towards new investment opportunities as our portfolio continues to grow and evolve alongside the global market."

History of the CPP, Goodman fund partnership

GNAP was established as a 45%-55% partnership between CPP Investments and Goodman Group, with a mandate to invest in “high-quality logistics and industrial property in key North American markets.”

The partners had committed approximately $900 million when they formed the venture, and expanded it several times over the next decade, including injections of $1.1 billion in 2014 and $2.5 billion in 2020.

According to Goodman’s website, the GNAP holds 28 properties spanning over 13 million square feet and valued at $6 billion.

It has focused on key logistics markets including Los Angeles, Inland Empire, San Francisco and Seattle in the west, as well as New Jersey and Philadelphia in the east.

CPP and Goodman continue to be partners on several other international investment ventures.

"We are proud of the success we've had with CPP Investments in GNAP across our global partnerships," said Greg Goodman, Goodman Group CEO, in the announcement. “We look forward to maintaining our strong working relationship across asset classes and geographies."

CPP's second major divestment this week

This is the second major divestment announcement by CPP Investments this week.

It also announced an agreement to sell its 49 per cent interest in four joint venture projects with Chinese real estate company Longfor Group Holdings. CPP expects to receive approximately C$235 million in net proceeds from the sale.

The sale includes four retail shopping centres in addition to related office and rental housing properties, in the cities of Shanghai, Suzhou, Chengdu and Chongqing.

CPP Investments first partnered with Longfor in 2014, and they have expanded the relationship via additional investments in the years since. 

About CPP, Goodman Group

Canada Pension Plan Investment Board (CPP Investments) manages the interests of over 22 million contributors and beneficiaries of the Canada Pension Plan. It holds global investments in public equities, private equities, real estate, infrastructure and fixed income.

Headquartered in Toronto, it has offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney. At Sept. 30, the fund totalled C$675.1 billion.

Goodman Group owns, develops and manages logistics properties and data centres in major global cities. It has operations in key consumer markets across Australia, New Zealand, Asia, Europe, the United Kingdom and the Americas.

Goodman Group is one of the largest listed specialist investment managers of industrial property globally. Its property portfolio includes logistics and distribution centres, warehouses, light industrial, multi-storey industrial, business parks and data centres. 

Goodman's total portfolio value is approximately $40 billion, according to its Q3 operational update.