GLOBAL – Canada Pension Plan Investment Board (CPPIB) has joined forces with Shapoorji Pallonji Group to acquire office buildings in India.

The Canadian institutional investor has entered into a strategic alliance with the Mumbai-based company and has provided an initial equity commitment of $200m (€145m) for an 80% stake in the new venture.

"India is a key long-term growth market for CPPIB, and we believe that the office sector will benefit from India’s economic growth," said a CPPIB spokesperson. "This strategic alliance is an attractive entry point into the Indian real estate market."

Shapoorji Pallonji has been active in India's real estate market for nearly 150 years and has an established reputation in the office sector.

The joint venture will be able to invest in major metropolitan areas in India and will focus on buildings that are well leased to strong tenants.

Additionally, the assets must provide the opportunity for value-add returns derived from active asset management.

The partners have not announced a specific timeline for acquisitions.

According to a study by global commercial real estate services firm Cushman & Wakefield, more than $1.3bn has been invested in the Indian office sector over the past three years.