Ivanhoé Cambridge is planning to invest $250m (€237m) in India’s residential market.

The real estate subsidiary of Caisse de dépôt et placement du Québec (CDPQ) has entered a joint venture with Indian developer Piramal Enterprises.

The joint venture will target five major metro cities in India and Piramal will co-invest between 25% and 50% in each transaction.

The Mumbai Metropolitan Region, Delhi, Bangalore, Pune and Chennai will be targeted, with capital made available to residential developers.

Daniel Fournier, chairman and chief executive of Ivanhoé Cambridge, said: “India’s compelling demographic and economic fundamentals combined with supportive government policies bode well for a long-term residential development strategy such as this one.”

Khushru Jijina, managing director at Piramal Fund Management, said: “We believe that the timing is opportune for the provision of both pure and preferred equity capital at an early stage in the project life cycle.”

He said equity funding with tier-one development partners would enable capital to be deployed over a longer time horizon and facilitate participation in larger projects.

Goldman Sachs took a stake in Indian developer Piramal Realty in 2015 investing $150m in the development arm of the Piramal Group.

The Piramal Group has previously entered into joint ventures with Canada Pension Plan Investment Board (CPPIB) and Dutch pension fund investor APG to invest in Indian housing and infrastructure, respectively.