GLOBAL - The Canada Pension Plan Investment Board (CPPIB) has placed another $400m (€320m) of new equity into China's industrial market. 

It made the investment through the Goodman China Logistics Holding partnership it set up with the Goodman Group. 

This Australian-based company also made a new $100m investment into the partnership.

Marc Machin, president at CPPIB Asia, said: "CPPIB's additional equity reflects our belief that China's logistic sector will continue to grow as demand for modern, efficient logistics facilities is being fuelled by a rising domestic demand for consumer goods."

The new commitment made by the two partners doubles the size of China Logistics to $1bn. 

The ownership of the partnership is 80% to CPPIB and 20% to Goodman.

The partnership has a mixed investment strategy of buying and developing logistics facilities in China.  

CPPIB expects that demand for logistics facilities will be driven by several factors, such as increased appetite for goods and services, improving transportation infrastructure, growth of e-commerce and increasing demand for modern and upgraded facilities.

The China Logistics partnership was first formed with CPPIB and Goodman in 2009. 

It has invested in 12 properties in six Chinese markets: Shanghai, Beijing, Tianjin, Kunshan, Chengdu and Suzhou. 

CPPIB is the main equity partner, with Goodman being the lead operation partner. 

Greg Goodman, group chief executive at Goodman, said: "Our footprint in China is expanding rapidly, and we now have in excess of 4m square meters of land available in key strategic locations. This includes land secured and under negotiation. 

"We have consumer demand to facilitate over 1m square meters of space, with approximately 400,000 square meters of developments in process currently and the ability to commence over 800,000 square meters of new logistics facilities in the next 12 months."