The Canada Pension Plan Investment Board has partnered with an India-based developer of industrial and logistics real estate to create IndoSpace Core.
CPPIB has initially committed about US$500 million to the joint venture, which will focus on acquiring and developing modern logistics facilities in India. To start, IndoSpace Core will acquire 13 industrial and logistics parks from current IndoSpace development funds. The joint venture will acquire the first nine facilities at closing and the additional facilities within 24 months.
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The properties are located in the top industrial and logistics hubs in India, including Chennai, Pune, Mumbai, Delhi and Bangalore. IndoSpace Capital Asia will manage the new entity.
“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,” said Andrea Orlandi, the fund’s managing director and head of real estate investments for Europe, in a news release.
“This joint venture gives us immediate scale and access to a significant development pipeline in a rapidly growing sector. IndoSpace is the leading industrial platform in India and we look forward to building a long-term partnership with IndoSpace and its sponsors through this joint venture.”