GLOBAL Logistic Properties (GLP) and Canada Pension Plan Investment Board (CPPIB) have set up an equally held joint venture to develop logistics facilities in Japan.
GLP, a developer of cutting-edge warehouses, said on Wednesday the new GLP Japan Development Venture II will have total equity commitments of 100 billion yen (S$1.23 billion) to start, but the size of the venture is expected to reach US$2 billion over three years, GLP said.
Construction of new developments is expected to begin in 2016.
GLP will seed the new venture with a 319,000-square-metre large-scale logistics park, called GLP Nagareyama, in the Greater Tokyo area.
The venture will be the second of its kind for both GLP and CPPIB. The first venture, GLP Japan Development Venture I, was launched in September 2011 and has reached 92 per cent of its investment capacity with US$2.4 billion of projects.