Canada Pension Plan Investment Board picks 80% in JV with Shapoorji Pallonji to buy office buildings in India

Canada Pension Plan Investment Board (CPPIB) and Shapoorji Pallonji Group have formed a strategic alliance to acquire foreign direct investment (FDI)-compliant, stabilised office buildings in the major metropolitan areas in India. CPPIB will own 80 per cent of the venture with an initial equity commitment of $200 million.

“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,” said Mark Wiseman, president and CEO, CPPIB. “India is a key growth market for CPPIB and, as a long-term investor, we believe

there are attractive investment opportunities across various sectors. We look forward to working alongside Shapoorji Pallonji, a well-aligned and experienced operator and developer in India,” Wiseman said.

“We are pleased to be entering into this strategic alliance with CPPIB as a like-minded long-term global investor. We intend to use our experience of

over 148 years in the Indian real estate market for the long-term success of this platform,” said Shapoor P Mistry, chairman of the Shapoorji Pallonji Group.

The venture will target FDI-compliant office assets that are substantially leased to prominent tenants, with scope for value-add returns from active asset management. The venture will be supported locally by the Shapoorji Pallonji Investment Advisors team led by Rajesh Agarwal. CPPIB was advised by Vikram Gandhi, founder of VSG Capital Advisors.

(Edited by Joby Puthuparampil Johnson)

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