Canada Pension Plan Investment Board (CPPIB) has put additional capital into its retail property joint venture in India to reach the agreed 49% stake.

In April last year, the Canadian pension agreed with mall developer The Phoenix Mills Limited (PML) to develop, own and operate retail-led, mixed-use developments.

Island Star Mall Developers (ISMDPL), a PML subsidiary, serves as the platform to implement the strategy. 

As part of the agreement, CPPIB initially held 30% of the venture with an equity commitment of around C$149m (€95.7m) and was to invest additional capital to reach its 49% stake.

CPPIB said today it has invested an additional C$185m into ISMDPL.

Through this second tranche, CPPIB has increased its investment, into the strategic investment platform, to reach its stake, with PML owning the remaining 51% stake.

The additional funding will allow ISMDPL to undertake new developments and acquisitions, creating new retail-led mixed-use assets that will offer superior shopping and entertainment experiences.

Andrea Orlandi, a managing director and head of real estate investments in Europe at CPPIB, said: “The investment platform we’ve created with The Phoenix Mills is executing well, and we are pleased to fund the second tranche of the commitment that will allow us to further expand our retail-focused investment platform.

“Through this platform, we have identified strategic assets over the last 12 months that will help us expand our retail portfolio in India, allowing CPPIB to participate in the growing retail sector in India.”

Since the inception of the platform, ISMDPL has acquired a land parcel in Pune (Wakad) and is exploring other investment opportunities.

Atul Ruia, a joint managing director at The Phoenix Mills, said: “In April 2017, when The Phoenix Mills Ltd. co-created the investment platform with CPPIB, we had envisaged to fully deploy the money within one year.”

Over the past 12 months, the investment platform has received support from PML and CPPIB to identify opportunities for deployment of these funds in key cities, Ruia adds.

“I look forward to this new journey for us where we will continue to create marquee retail destinations.”

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