India Real Estate is getting a big boost. IndoSpace and CPP Investments (Canada Pension Plan Investment Board) have announced a joint investment of $205 million in IndoSpace’s fourth real estate fund, signalling a strong commitment to the economic growth of India. This marks the first close of the IndoSpace Logistics Parks IV fund which is targeting total equity commitments of $600 million.
“We have made numerous investments in India’s industrial space where we see strong demand as the manufacturing sector continues to grow and the ecommerce sector matures,” said Hari Krishna V, Managing Director, Head of Real Estate India, CPP Investments.
The fund, ILP IV, will focus on India’s largest logistics real estate markets and add 25-30 million square feet to the IndoSpace portfolio. Brian Oravec, Managing Partner and CEO of IndoSpace Capital Asia, noted that ILP IV will allow the company to continue to expand its unique national network to better serve customers.
This is the latest venture between CPP Investments and IndoSpace. The first joint venture, IndoSpace Core, was established in 2017 and now owns the largest portfolio of stabilized modern warehouses and logistic parks in India. CPP Investments has also invested in ILP III. Following the investment in ILP IV, the partnership will exceed US$1 billion in assets.
India Real Estate Fund a solid enabler to accelerate India Growth Story – IndoSpace
“Industrial and logistics infrastructure is a key enabler of economic growth,” said Oravec. “To meet India’s aim of becoming a $5 trillion economy by 2025, IndoSpace is excited to continue to be one of India’s key infrastructure creators.”
India’s real estate sector is getting a major boost from an investment of $205 million from Canada Pension Plan Investment Board (CPPIB) and IndoSpace, two leading global investors in the sector.
The investment, which will be made through a newly-created fund, will be used to acquire and develop industrial and logistics parks in India, helping to drive economic growth and create jobs.
Brian Oravec, Managing Partner and CEO, IndoSpace Capital Asia, said ILP IV will allow the company to continue to expand its unique national network to better serve customers. “Industrial and logistics infrastructure is a key enabler of economic growth. To meet India’s aim of becoming a $5 trillion economy by 2025, IndoSpace is excited to continue to be one of India’s key infrastructure creators.”
IndoSpace is an investor, a developer, and an operator of Grade A industrial and logistics real estate in India. It has a national network of 50 logistics parks with 56 million square feet delivered/under development across 10 cities.
This is the first time CPPIB, one of the world’s largest pension funds, has invested in India’s real estate sector. ILP IV will focus on India’s largest logistics real estate markets: Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune.
The establishment of ILP IV follows on from the first three development funds, which have a combined real estate of 56 million square feet of modern logistics in India.
According to the CPP website , the company claims –
The CPP Investments mandate is based on a governance structure that distinguishes us from a sovereign wealth fund. We have an investment-only mandate, unencumbered by political agendas and insulated from political interference in investment decision-making. Our management reports to an independent Board of Directors.
In carrying out our mandate, we aim to continually develop, execute and enhance the investment strategy that balances prospective risk and reward in order to ensure the long-term sustainability of the CPP Fund.
