Published On: Wed, May 17th, 2017

Canada Pension Plan to Invest US$ 500Mn in Indian logistics JV

The Canada Pension Plan Investment Board (CPPIB) 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.

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.

Andrea Orlandi, managing director and head of real estate investments in Europe at CPPIB, said that 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.

The joint venture offers “immediate scale and access to a significant development pipeline in a rapidly growing sector”, he said.

IndoSpace is the leading industrial platform in India and they look forward to building a long-term partnership with IndoSpace and its sponsors through this joint venture.

The joint venture has the option to acquire additional industrial and logistics parks totalling approximately 11 million square feet, which are currently being developed by IndoSpace funds and are worth approximately US$700 million. IndoSpace Core will also opportunistically acquire stabilized assets from third parties across India.

Sameer Sain, Co-Founder and Managing Partner, Everstone Group, said that  as the leading owner and developer of logistics and industrial spaces in India, IndoSpace is excited to partner with CPPIB, one of the premier owners of industrial real estate globally. The combination of their expertise and a strong macro backdrop, including Make in India, the GST rollout and growth in e-commerce, will provide significant opportunities for this joint venture.

IndoSpace is a pioneer and largest provider of modern industrial and logistics real estate in India and currently has 21 industrial and logistics parks across India. It is a joint venture between the Everstone Group and Realterm. The Everstone Group is a premier India and South East Asia focused private equity and real estate firm. Realterm is a multi-strategy private equity real estate operator whose industrial platforms, Realterm Logistics and Aeroterm, are industry leaders with over 300 operating and development properties in North America, Europe and India.

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