Shapoorji Pallonji Group and Canada Pension Plan Investment Board (CPPIB), on Thursday, announced the formation of a venture to acquire FDI-compliant office assets in major metropolitan areas of the country. CPPIB will own 80 per cent of the venture with an initial equity commitment of $200 million.
“We are pleased to be entering into this strategic alliance with CPPIB as a like-minded long-term global investor,” Shapoorji Pallonji Group Chairman Shapoor P Mistry said in a release here.
Shapoorji Pallonji had a remarkable performance track record and reputation in the market for sourcing, delivering and executing value-added strategies, he said.
The company wished to use this experience of over 148 years in the Indian real estate market for the long-term success of this platform, he added.
The venture will target FDI-compliant office assets that are substantially leased to prominent tenants, with scope for value-added returns from active asset management.
“We are delighted to be partnering with Shapoorji Pallonji to launch our first real estate venture in India focusing on stabilised office properties in major urban centres,” CPPIB President and CEO Mark Wiseman said.
India is a key growth market for CPPIB and, as a long-term investor, CPPIB believe there are attractive investment opportunities across various sectors, he added.