The Canada Pension Plan Investment Board is investing US$205 million as an anchor investor in IndoSpace’s new real estate fund in India.
The investment marks the first close for IndoSpace Logistics Parks IV, the real estate company’s fourth development vehicle, which is targeting US$600 million of total equity commitments. In 2017, the CPPIB and Indospace established a joint venture. It now owns the largest portfolio of stabilized modern logistics assets in India. Following the latest investment, the partnership will exceed US$1 billion in assets.
Logistics Parks IV will add an additional 25-30 million square feet to the IndoSpace portfolio. It will focus on India’s largest logistics real estate markets: Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune. Its establishment follows the first three development funds, which have a combined total of 56 million square feet of modern logistics real estate in India.
In a press release, Hari Krishna V, the CPPIB’s managing director and head of real estate in India, said the investment organization sees strong demand in India as the manufacturing sector continues to grow and the e-commerce sector matures. “We are pleased to be working with our longstanding partner IndoSpace to further capitalize on opportunities in this space and believe this investment will deliver strong risk-adjusted returns for CPP contributors and beneficiaries.”
In other investment news, National Gas has completed an acquisition of a multinational utility company partially owned by the British Columbia Investment Management Corp.
The acquisition follows the completion of the sale of a 60 per cent equity stake in National Grid’s gas transmission and metering business, led by the BCI and Macquarie Asset Management. As part of the deal, announced in March 2022, the consortium has an option to acquire the remaining 40 per cent stake in the business.
According to a press release, the organization will invest in innovation to future proof the U.K., including by repurposing existing assets working in collaboration with government and industry partners to deliver a hydrogen “backbone” for Britain.
“BCI strongly supports National Gas’ innovative decarbonization strategy, which involves transitioning away from fossil fuels while still offering a secure, safe and reliable network at least cost to consumers,” said Lincoln Webb, executive vice-president and global head of infrastructure and renewable resources at the BCI, in the release. “Our investment in National Gas is a testament to our support of the U.K.’s commitment to net-zero carbon emissions by 2050.”