Goodman Group and the Canada Pension Plan Investment Board (CPPIB) have launched a new logistics and industrial partnership called the Goodman North America Partnership (GNAP).

Goodman and CPPIB have targeted an equity amount of USD890m on a 55/45 basis, representing USD490m and USD400m respectively.

GNAP's investment strategy is to target investment in logistics and industrial property in key North American markets. The focus will initially be on development led opportunities, with value-add and stabilised asset acquisitions to be considered over time in line with market conditions.

Greg Goodman, chief executive of Goodman, says: "GNAP further builds on our relationship with CPPIB and reinforces our strategy of matching third party capital with our development pipeline, enabling us to enter North America in a measured way. We will continue to work closely with our global customers to deliver high quality logistics and industrial space, consistent with our prudent development approach."

This transaction represents CPPIB's first direct investment in US industrial real estate, a sector which is expected to benefit from a lack of new supply in recent years and continued growth in global trade.

Peter Ballon, CPPIB's vice president, real estate investments – Americas, says: "This latest partnership broadens CPPIB's successful relationship with Goodman, with whom we hold investments in Australia, Hong Kong and China. We believe that this joint venture will provide significant opportunities to invest in prime logistics and industrial locations across key American markets."

As announced on 20 June, Goodman has entered into an agreement with California based Birtcher Development and Investments, focused on the development of, and investment in, prime quality logistics and industrial facilities in key locations across North America. Opportunities will be sought in the key West Coast logistics hubs of Los Angeles (Inland Empire), San Francisco and Seattle, with New York, New Jersey and Philadelphia to be targeted on the East Coast. Other key logistics hubs based around inland ports, intermodals and tier one ports will also be considered.