Canada Pension Plan Investment Board (CPPIB) has committed $500 million to a joint venture with IndoSpace, a developer of modern industrial and logistics real estate in India.
The JV, which is majority owned by the Canadian giant but managed by IndoSpace, plans to acquire and develop modern logistics facilities in the country.
Named IndoSpace Core, the partnership has already agreed to acquire 13 industrial and logistics parks totaling approximately 14 million square feet from current IndoSpace development funds.
The joint venture will acquire the first nine facilities at closing, and the additional assets within 24 months.
IndoSpace Core also has the option to acquire additional industrial and logistics parks totaling approximately 11 million square feet, which are currently being developed by IndoSpace funds and are valued at approximately $700 million.
“The strong fundamentals underlying the Indian manufacturing and retail sectors and growth in e-commerce, combined with the low stock of high-quality modern industrial real estate in the country, make this a compelling investment opportunity for a long-term investor like CPPIB,” commented Andrea Orlandi, managing director, head of real estate investments – Europe, CPPIB.
Back in April CPPIB formed a partnership with the Mumbai-based developer Phoenix Malls to develop, own and operate retail-led mixed-use developments in India. The partnership marked CPPIB’s entry into India’s retail sector that has increasingly been attracting substantial global institutional investment.
CPPIB has C$298.1 billion of assets under management, as of December 31, 2016 with around C$37.7 billion in property.
IndoSpace, a joint venture between Indian private equity house Everstone Group and Annapolis-headquartered industrial real estate operator and fund manager Realterm, develops industrial and logistics real estate in India and currently has 21 industrial and logistics parks across the country.