Ivanhoe Cambridge, the real estate investment arm of Canada’s second largest pension fund manager CDPQ, has shown interest in buying stake in the rental assets of Bengaluru-based Prestige
Estates, said a source in the know. Prestige
is looking to sell 40-50 per cent stake in its rental assets and could raise about $500 million, said the source. “Ivanhoe is looking at this stake as it wants to enter the South Indian commercial property market and Prestige
is one of the biggest asset owners there,” said the source. Ivanhoe Cambridge
has C$56 billion ($42.76 billion) of assets as of last year. According to sources, Canada’s biggest pension manager Canada Pension Plan Investment Board
(CPPIB) is also in the race. When contacted, a public relations executive for Prestige
Estates said the company cannot comment on the matter due to its board meeting. An Ivanhoe spokesperson said they do not comment on rumours.
spokesperson said: “We have no comment on this story.”Prestige
Estate has already restructured its office, retail, hospitality and residential verticals and looking to sell stake in office and retail assets. The company plans to use the funds to invest in new projects and reduce its debt. This is the second time Ivanhoe Cambridge
is in the race for an Indian real estate asset. It had opened its office here in 2008 and then shut it, as it could not find good opportunities. In the second innings, it is becoming active in Indian real estate.
Early this year, it had committed $250 million in a joint venture with Ajay Piramal group to provide equity capital to real estate developers. Ivanhoe Cambridge
is in talks with Singapore-headquartered Assetz Property Group
to invest $100 million (Rs 680 crore) in the latter’s logistics operations in the country, according to a earlier Business Standard report.