CPPIB, IndoSpace form industrial, logistics real estate JV
The C$298.1 billion ($218.9 billion) Canada Pension Plan Investment Board and IndoSpace, an India–based developer of modern industrial and logistics real estate, today announced the creation of IndoSpace Core, a joint venture that will focus on acquiring and developing modern logistics facilities in India.
CPPIB has initially committed approximately $500 million to the joint venture and will own a significant majority stake. IndoSpace Capital Asia will manage the new entity.
IndoSpace Core plans to acquire 13 industrial and logistics parks properties located in India, including Chennai, Pune, Mumbai, Delhi and Bangalore. The properties will total approximately 14 million square feet, from current IndoSpace development funds. The joint venture will acquire the first nine facilities totaling approximately 9 million square feet at closing, and the additional facilities within 24 months.
“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 for a long-term investor like CPPIB,” says Andrea Orlandi, managing director, head of Europe real estate investments at CPPIB.
IndoSpace Core 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 $700 million. IndoSpace Core will also opportunistically acquire stabilized assets from third parties across India.
In addition, IndoSpace currently has 21 industrial and logistics parks across India as well in a joint venture between the Everstone Group and Realterm.