Canada Pension Plan Investment Board (CPP Investments) is investing INR30bn (€321m) to acquire a 27% stake in Prestige Hospitality Ventures Limited (PHVL), marking its first direct investment in India’s hospitality sector.
The majority of the capital backing the hospitality platform of Indian developer Prestige Estates Projects will support PHVL’s expansion across its operating luxury and premium hotel portfolio and development pipeline in gateway cities, including Bengaluru, Chennai, Delhi, Goa, Hyderabad and Mumbai.
Irfan Razack, chairman and managing director at Prestige Group, said: “Hospitality is an important part of Prestige’s long-term growth strategy, and we see significant opportunity to build a scaled, high-quality portfolio across India. We are pleased to welcome CPP Investments as a long-term partner in Prestige Hospitality Ventures.
“Their long-term investment approach complements our development capabilities and market understanding and together we look forward to creating a hospitality platform of scale while delivering distinctive experiences for our guests and long-term value for our stakeholders.”
Hari Krishna, head of real estate India and Mumbai office head at CPP Investments, said: “We see compelling opportunities in India’s hospitality sector, driven by rising travel and a demand for quality accommodation. Prestige has built a strong portfolio of assets across India and benefits from a robust pipeline built up by its established real estate platform.
“This investment offers an opportunity to participate in the sector’s long-term growth through a well-positioned platform, while seeking to generate attractive risk-adjusted returns for CPP contributors and beneficiaries.”
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