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

The JV company, bought SP Infocity IT Park for $220 million (Rs 13.40 billion) in mid-2015

Raghavendra Kamath  |  Mumbai 

Shapoorji Pallonji

A (JV) company between and Canada's largest pension fund manager Canada Pension Plan Investment Board (CPPIB) is putting its information and technology (IT) park in on the block almost three years after buying it, a source said.

The JV company, bought 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 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 could not be contacted, a mail sent to 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 and set up the JV in 2013 with the mandate of acquiring (FDI)-compliant, stabilised office buildings in the major metropolitan areas in India. The 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 property since it was set up.

However, Shapoorji Pallonji also tied up with Germany's group last year for buying commercial assets. The CPPIB has tied up with 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, are selling office assets. and are considered to be front runners for Blackstone's IT parks in Pune. The property is valued at Rs 20 billion, sources said. is selling its 1.5-million-sq-ft Blue Ridge SEZ it had bought from private equity fund manager IDFC Alternatives and another that it bought from DLF in Pune.

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

First Published: Mon, April 02 2018. 05:57 IST