Canada Pension Plan Investment Board (CPP) on Monday said it will be infusing $205 million in IndoSpace’s new real estate fund, as its anchor investor.
The partnership between the two companies now exceeds $1 billion in assets.
The $205 million is the first close under IndoSpace Logistics Parks IV (ILP IV), the real estate company’s fourth development vehicle, which is aiming to raise a total of $600 million in equity.
Strengthening the company’s position in the Indian market, the fourth fund will add an additional 25-30 million square feet to IndoSpace’s portfolio. It will focus on logistics real estate markets like Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune, the companies said in a statement on Monday.
In total, the company will have 56 million square feet of modern logistics real estate in India. “We see strong demand as the manufacturing sector continues to grow and the e-commerce sector matures (in India)…(we) believe this investment will deliver strong risk adjusted returns for CPP contributors and beneficiaries,” said Hari Krishna V, managing director, head of real estate India, CPP Investments.