The partnership will be managed by IndoSpace Capital Asia, India’s largest developer of modern industrial and logistics real estate.
CPPIB has committed approximately $500 million and will own a significant majority stake in the joint venture, attracted by the strong fundamentals in the Indian manufacturing and retail sectors, said a company spokesperson
The joint venture will acquire 13 industrial and logistics parks, totalling 14 million square feet, in key logistics hubs including Chennai, Mumbai and Delhi.
The first nine will be acquired on closing with the remaining four to be finalised in the next 24 months.
The fund has the option to acquire assets totalling 11 million square feet, worth approximately $700 million, currently under development by IndoSpace funds.
“The growth in ecommerce, combined with the low stock of high-quality modern industrial real estate in the country, make this a compelling investment opportunity for a long-term investor like CPPIB," said Andrea Orlandi, head of real estate investments for Europe at CPPIB.
He added: “This joint venture gives us immediate scale and access to a significant development pipeline in a rapidly growing sector. IndoSpace is the leading industrial platform in India and we look forward to building a long-term partnership and its sponsors through this joint venture.”
Sameer Sain, co-founder and managing partner at Everstone Group, said: “IndoSpace is excited to partner with CPPIB, one of the premier owners of industrial real estate globally. The combination of our expertise and a strong macro backdrop, including Make in India, the Goods and Services Tax rollout and growth in e-commerce, will provide significant opportunities for this joint venture.”