CPPIB, which manages funds worth $180.9 billion (about Rs 11 lakh crore) of 18 million Canadian pensioners, is looking for opportunities in infrastructure, private equity (PE) and debt-funding, among others.
CPPIB had announced a joint venture with Mumbai-based conglomerate Shapoorji Pallonji Group last Thursday to buy into foreign direct investment (FDI)-compliant, ready office buildings in major Indian cities. It has committed $200-million (Rs 1,200-crore) investments in the venture.
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The pension board is also reportedly planning to float a real-estate, non-banking financial company (NBFC) with Ajay Piramal group to lend to realty developers here. CPPIB and Piramal Group are reportedly planning to invest $500 million in the joint venture. CPPIB manages real estate investments worth $20.6 billion (about Rs 1.27 lakh crore).
"India is a key long-term growth market for CPPIB and we will be seeking further opportunities that fit our investment criteria," said Graeme Eadie, senior vice-president and head of real estate investments at CPPIB. According to Eadie, CPPIB does not have a specific allocation for investments in India. He added CPPIB had not announced any venture with the Piramal Group.
"In international real estate investments, CPPIB seeks to work with strong partners who can provide deep, local expertise in the sourcing, development and operational management of investment properties," Eadie noted.
When asked about valuations and returns from Indian properties, Eadie said: "While we do not provide specific return expectations since there is a great deal of variation among the properties we have invested in globally, we seek opportunities that will provide attractive risk-adjusted returns over the long term."
Large sovereign funds and pension funds are already betting on sectors such as real estate in India. On November 19, GIC, the sovereign wealth fund of the Singapore government, and Ascendas, a developer-investor from the same country, announced an investment of S$477 million (about Rs 3,000 crore), in Indian business properties.
The duo has set up 'Ascendas India Growth Programme', with GIC being the principal investor. The fund will invest in business spaces in Bangalore, Chennai, Hyderabad, Pune, Mumbai and the Delhi National Capital Region.
Earlier this year, Oman's State General Reserve Fund, GIC and Temasek had committed to invest $200 million in a realty fund floated by HDFC Property Fund. Abu Dhabi Investment Authority, a sovereign wealth fund, recently appointed Kotak Realty to invest $200 million in India.
CPPIB AT A GLANCE
|Manages funds worth $180.9 billion (about Rs 11 lakh crore) of 18 million Canadian pensioners
|Handles realty investments of $20.6 billion (Rs 1.27 lakh crore)
|Has announced JV with Shapoorji Pallonji group to buy commercial properties
|Last month, it tied-up with Banco BTG Pactual SA to invest in Brazilian real estate