Ivanhoé Cambridge, the real estate subsidiary of Caisse de dépôt et placement du Québec, is partnering with a diversified company based in India to invest in urban residential developers across the country.
Ivanhoé Cambridge is allocating an initial $329.68 million in the investment, while Piramal Enterprises Ltd., which has a large presence in pharmacy, health-care information management and financial services, will commit an additional amount and co-invest between 25 per cent and 50 per cent of each transaction.
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“India represents a key market for our global growth,” Michael Sabia, president and chief executive officer at Caisse, said in a release. “We look forward to a long term and fruitful business relationship with Piramal in the years to come.”
Piramal’s fund management division provides financing to real estate companies and has strategic alliances with institutional investors including CPPIB Credit Investments Inc., a subsidiary of the Canada Pension Plan Investment Board.
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“India’s compelling demographic and economic fundamentals combined with supportive government policies bode well for a long-term residential development strategy such as this one,” Daniel Fournier, chairman and chief executive officer at Ivanhoé Cambridge, said in the release.
The release also noted a strong demand from Indian real estate developers that want support in the early stages of development. It added Ivanhoé Cambridge and Piramal will make capital available to developers that have an excellent track record and high potential of providing strong returns.
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