Shapoorji Pallonji and CPPIB joint venture firm to sell Chennai IT park

A joint venture (JV) company between Shapoorji Pallonji and Canada's largest pension fund manager  Canada Pension Plan Investment Board (CPPIB) is putting its information and technology (IT) park in Chennai on the block almost three years after buying it, a source said.
 
The JV company, bought SP Infocity IT Park for $220 million (Rs 13.40 billion) in mid-2015.
 
"The park is fully leased and has zero vacancy. It is one of the best performing assets in the Chennai micromarket. That is why partners are looking to sell the asset," said the source.
 
The asset is located at Old Mahabalipuram Road and has close to 2.7 million square feet of operational space.
 
While the CPPIB could not be contacted, a mail sent to Shapoorji Pallonji Investment Advisors did not elicit any response. Experts said the property could be valued at Rs 23 billion, given the market rents in the area.
 
The CPPIB and Shapoorji Pallonji set up the JV in 2013 with the mandate of acquiring foreign direct investment (FDI)-compliant, stabilised office buildings in the major metropolitan areas in India. The CPPIB had picked up 80 per cent in the venture with an initial equity commitment of $200 million.
 
The JV was slow on investments and made a lone investment in the Chennai property since it was set up.
 
However, Shapoorji Pallonji also tied up with Germany's Allianz group last year for buying commercial assets. The CPPIB has tied up with Abu Dhabi Investment Authority for buying Adani group's office property in Mumbai's Bandra-Kurla Complex.
 
The plans come at a time when other investors such as Blackstone, GIC-Tishman Speyer are selling office assets. Xander and Ascendas are considered to be front runners for Blackstone's IT parks in Pune. The property is valued at Rs 20 billion, sources said. Blackstone is selling its 1.5-million-sq-ft Blue Ridge SEZ it had bought from private equity fund manager IDFC Alternatives and another IT SEZ that it bought from DLF in Pune.