CPP Investments has expanded its relationship with IndoSpace by making a $205m (€188.3m) commitment to the Indian real estate company’s latest fund.
The Canadian investor said it has backed the IndoSpace Logistics Parks IV (ILP IV) fund’s first close as an anchor investor. IndoSpace is seeking to raise $600m for its fourth development fund.
CPP Investments and IndoSpace first partnered in 2017 to create IndoSpace Core, a venture that currently owns modern logistics assets in India.
CPP Investments, which previously also invested in ILP III, said following the investment in ILP IV, the partnership will exceed $1bn in assets.
LP IV will focus on India’s largest logistics real estate markets of Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune, CPP Investments said.
The ILP IV fund follows the first three development funds, which have a combined total of 56m sqft of modern logistics real estate in India.
Hari Krishna V, managing director and head of real estate India at CPP Investments, said: “Over the past few years, we have made numerous investments in India’s industrial space, where we see strong demand as the manufacturing sector continues to grow and the e-commerce sector matures.
“We are pleased to be working with our longstanding partner IndoSpace to further capitalise on opportunities in this space and believe this investment will deliver strong risk-adjusted returns for CPP contributors and beneficiaries.”
Brian Oravec, a managing partner and CEO of IndoSpace Capital Asia, said: “We are excited to extend our successful partnership with CPP Investments. CPP Investments’ commitment to ILP IV is a testament to IndoSpace’s leadership in the industrial and logistics real estate space in India.
“ILP IV will allow us to continue to expand our unique national network to better serve our customers. Industrial and logistics infrastructure is a key enabler of economic growth. To meet India’s aim of becoming a $5trn economy by 2025, IndoSpace is excited to continue to be one of India’s key infrastructure creators.”
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