Canada Pension Plan Investment Board (CPPIB), which has become one of the most active large institutional investors in India over the last five years and inked transactions worth around $3 billion in 2022 alone, has begun the new year with a Limited Partner (LP) commitment in the country.
CPPIB has committed $205 million as an anchor investor in IndoSpace’s new real estate fund. The investment marks the first close for IndoSpace Logistics Parks IV (ILP IV), the company’s fourth development vehicle, targeting $600 million of total equity commitments.
This is the latest venture between CPPIB and IndoSpace. The first joint venture, IndoSpace Core, was established in 2017 and now owns the largest portfolio of stabilized modern logistics assets in India. CPPIB has also invested in ILP III. Following the investment in ILP IV, the partnership will exceed $1 billion in assets.
ILP IV will add an additional 25-30 million square feet to the IndoSpace portfolio and will focus on India’s largest logistics real estate markets: Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune.
The establishment of ILP IV follows on from the first three development funds, which have a combined total of 56 million square feet of modern logistics real estate in India.
Hari Krishna V, Managing Director, Head of Real Estate India, CPPIB, said, “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… believe this investment will deliver strong risk adjusted returns for CPP contributors and beneficiaries.”
Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPPIB had AUM of C$529 billion as of September 30, 2022.
Brian Oravec, Managing Partner and CEO, IndoSpace Capital Asia, said, “ILP IV will allow us to continue to expand our unique national network to better serve our customers. Industrial and logistics infrastructure is a key enabler of economic growth.”
IndoSpace is the largest investor, developer, and operator of grade A industrial and logistics real estate in India. It is part of the alternative investment group Everstone. It has a national network of 50 logistics parks with 56 million square feet delivered/under development across 10 cities.