08/09/2012 04:16 EDT | Updated 10/09/2012 05:12 EDT

CPPIB, Goodman announce US$890-million U.S. industrial real estate deal

TORONTO - The CPP Investment Board is taking part in a US$890-million partnership to develop industrial real estate in the United States.

It's the fund's first direct investment in the sector, that it expects to benefit from a recent lack of new supply and growth in global trade.

Global property developer and manager Goodman Group will invest $490 million a 55 per cent stake in the joint venture, called the Goodman North America Partnership.

CPPIB is investing $400 million for a 45 per cent interest.

CPPIB and Goodman have already invested together in Australia, Hong Kong and China.

CPPIB managed about C$161.6 billion in funds at the end of March.