Canada Pension Plan Investment Board (CPPIB) plans to invest up to $1.2 billion in a joint venture with Mumbai-based IndoSpace, an industrial real estate-focused investment firm jointly owned by private equity investor Everstone Capital and Maryland-based Realterm Global.
- Canada Pension Plan Investment Board and IndoSpace form IndoSpace Core, a joint venture that will focus on acquiring modern logistics facilities in India.
- CPPIB has initially committed approximately $500 million to the joint venture and will own a significant majority stake.
- IndoSpace Core has committed to acquiring 13 well-located industrial and logistics parks totaling approximately 14 million square feet, from current IndoSpace development funds.
- The venture also has the option to acquire an existing pipeline worth approximately $700 million as well as participate in a future development pipeline.
Andrea Orlandi, Managing Director, Head of Real Estate Investments – Europe, CPPIB, said, “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.
The Canadian fund, which has invested about $3 billion in India since 2010, has been ramping up its India play over the past couple of years. Last month, the Toronto-headquartered fund formed a joint investment platform with Mumbai-based developer The Phoenix Mills Ltd to develop, own and operate retail-led mixed-use developments in India, reports VCCircle.