Two pension funds have teamed up with an Australian property specialist for a £1 billion partnership to invest in UK logistics and industrial development opportunities, as demand from retailers for warehouse and distribution space continues to grow.

The property investment manager Goodman Group, the 269 billion Canadian dollar Canada Pension Plan Investment Board and the €400 billion Dutch pension fund asset manager APG Asset Management will each invest £200 million for a 33% stake in the newly-formed Goodman UK Logistics Partnership, the firms confirmed in a statement on October 8.