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Canada Pension Plan Investment Board (CPPIB), a professional investment management organisation, and IndoSpace, Indias largest developer of modern industrial and logistics real estate, on Monday announced 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," a joint statement said.
The statement said the joint venture, IndoSpace Core, has committed to acquiring 13 well-located industrial and logistics parks, totalling approximately 14 million square feet, from current IndoSpace development funds.
"The joint venture will acquire the first nine facilities totalling approximately nine million square feet at closing, and the additional facilities within 24 months. The assets are prime industrial properties located in the top industrial and logistics hubs in India, including Chennai, Pune, Mumbai, Delhi and Bangalore," it said.
The statement added that the joint venture 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.
"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," said Andrea Orlandi, Managing Director, Head of Real Estate Investments - Europe, CPPIB.
"This joint venture gives us immediate scale and access to a significant development pipeline in a rapidly growing sector."
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)