Canada Pension Plan Investment Board (CPPIB) is investing US$500m (€455m) in Indian logistics real estate.

The IndoSpace Core joint venture with Indian developer IndoSpace will be majority owned by the Canadian institution.

IndoSpace Core has bought 13 industrial and logistics parks totalling around 14m sqft in Chennai, Pune, Mumbai, Delhi and Bangalore from current IndoSpace development funds.

Andrea Orlandi, managing director and head of real estate investments in Europe at CPPIB, said: “The strong fundamentals underlying the Indian manufacturing and retail sectors and growth in e-commerce, combined with the low stock of high-quality modern industrial real estate in the country, make this a compelling investment opportunity.”

The joint venture offers “immediate scale and access to a significant development pipeline in a rapidly growing sector”, he said.

“IndoSpace is the leading industrial platform in India and we look forward to building a long-term partnership with IndoSpace and its sponsors through this joint venture.”

The joint venture has an option to acquire an existing 11m sqft pipeline worth around US$700m as well as participate in a future development pipeline.

IndoSpace Core will also opportunistically acquire stabilised assets from third parties across India.