Canadian institutional investors Ivanhoé Cambridge and QuadReal Property Group plan to invest up to US$800m in Indian real estate with industrial property specialist Logos.
The two respective subsidiaries of the Caisse de dépôt et placement du Québec (CDPQ) and British Columbia Investment Management Corporation (bcIMC) are investing via the newly created Logos India Logistics Venture.
The strategy to develop and own modern logistics facilities across India will be managed by Logos India, a new partnership set up by Logos Property and India’s Assetz Property Group.
Ivanhoé Cambridge, the real estate arm of CDPQ, has invested with Logos in the past, most recently helping the company expand beyond Australia, China and Singapore into Indonesia.
Vancouver-based QuadReal, established last year to manage bcIMBC’s real estate investments, is investing with Logos for the first time.
Jonathan Dubois-Phillips, president of international real estate at QuadReal, said his firm had conducted extensive due diligence to understand the economic, demographic and government forces driving growth in India.
Rita Rose Gagné, president of growth markets at Ivanhoé Cambridge, described the logistics real estate in India as a promising high-growth sector.
“India is a strategic market for Ivanhoé Cambridge and we are continuing to grow our presence and our footprint there,” she said.
Announcing the partnership in August, Logos and Assetz said they were closing in on their first US$400m equity raising to invest in India.
In a statement today, Logos India said the Logos India Logistics Venture would have an investment capacity of up to US$800m.
In August, Logos India said it had identified a strong pipeline of opportunities across the key logistics hubs of Mumbai, Pune, Chennai, New Delhi, Bangalore, Hyderabad and Ahmedabad.
The markets are in a prime position to capitalise on India’s emerging consumer base, where demand for modern facilities generated by economic growth, urbanisation and e-commerce is growing.
Trent Iliffe, joint managing director of the Logos Group, said India was the next step in the group’s pan-Asian real estate strategy.
“We are focused on meeting strong demand from our customers and ensuring we can help them grow to address the challenges of the India supply-chain market,” he said.