CPPIB will own 80 per cent of the venture with an initial equity commitment of USD 200 million.
"We are pleased to be entering into this strategic alliance with CPPIB as a like-minded long-term global investor," Shapoorji Pallonji Group Chairman Shapoor P Mistry said in a release issued here.
Shapoorji Pallonji has a remarkable performance track record and reputation in the market for sourcing, delivering and executing value-added strategies and the company intend to use this experience of over 148 years in the Indian real estate market for the long-term success of this platform, he added.
The venture will target FDI-compliant office assets that are substantially leased to prominent tenants, with scope for value-added returns from active asset management.
"We are delighted to be partnering with Shapoorji Pallonji to launch our first real estate venture in India focusing on stabilised office properties in major urban centres," CPPIB President and CEO Mark Wiseman said.
India is a key growth market for CPPIB and, as a long-term investor, CPPIB believe there are attractive investment opportunities across various sectors, he added.
The venture will be supported locally by the Shapoorji Pallonji Investment Advisors team led by Rajesh Agarwal.
CPPIB was advised by Vikram Gandhi, founder of VSG Capital Advisors, and Senior Advisor for investment opportunities in India.
The Shapoorji Pallonji Group's flagship company Shapoorji Pallonji & Company specialises in construction, design and build and EPC.
CPPIB is a investment management organisation that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries.