Canada Pension Plan Investment Board (CPP Investments) is committing up to INR13.5bn (€157.2m) to a newly created office-led mixed-use development venture in India with Phoenix Mills Limited (PML).
CPP Investments is investing the capital in tranches, for up to 49% stake in PCREPL, the venture that will own the asset in Lower Parel, Mumbai.
The office-led mixed-use asset will complement the existing retail development at Phoenix Palladium, Mumbai and The St. Regis, Mumbai hotel.
The project is expected to be completed in 2026, the companies said in a joint statement.
Atul Ruia, Chairman at PML, said: “I am delighted to further expand our existing relationship with CPP Investments and together we will look to create an exemplary office-led development at Lower Parel.”
Hari Krishna, managing director, real estate – India, CPP Investments, said: “We are very pleased to further expand our existing relationship with PML to develop world-class office space which will cater to the needs of global and domestic corporations.
”As a longstanding investor in India, this investment cements our already strong and deep presence in the country’s fast-growing property sector, and will deliver steady, long-term returns for CPP contributors and beneficiaries.”
PML is a retail mall developer and operator in India and is the pioneer of retail-led, mixed-use developments in India.
PML and CPP Investments’ first joint venture, Island Star Mall Developers Private, was formed in 2017 to develop, own and operate retail-led, mixed-use developments across India. In May 2021 a second joint venture between PML and CPP Investments was formed to develop a regional retail centre in Alipore, Kolkata.
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