CPP Investments anchors new IndoSpace fund with $205 mn investment

Investment will add an additional 25-30 million square feet to real estate firm's portfolio

Canada Pension Plan Investment Board (CPP Investments), an asset management company, said on Monday it has entered into a joint venture (JV) with IndoSpace and will invest $205 million in the real estate firm’s fund.

The JV marks the first close for IndoSpace Logistics Parks IV (ILP IV), a development vehicle targeting $600 million of total equity commitments. CPP’s investment will add an additional 25-30 million square feet to IndoSpace’s portfolio, focusing on real estate markets in Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune.

CPP Investments has also invested in IndoSpace Logistics Parks III. Following the investment in ILP IV, the partnership will exceed $1 billion in assets.

ILP IV follows the first three development funds, which have a combined total of 56 million square feet of modern logistics real estate in India.

“Over the past few years, we have made numerous investments in India’s industrial space, where we see strong demand 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 capitalise on opportunities in this space and believe this investment will deliver strong risk adjusted returns for CPP contributors and beneficiaries,” said Hari Krishna V, managing director & head of Real Estate India, CPP Investments.

Brian Oravec, managing partner and chief executive officer of IndoSpace Capital Asia, said industrial and logistics infrastructure enables economic growth. To assist India’s aim of becoming a $5 trillion economy by 2025, IndoSpace will continue to be a key infrastructure creator.