Real estate developer Embassy Group and Ivanhoé Cambridge, the realty arm of Canada pension fund CDPQ, have launched a platform focused on office parks in India, the companies said in a statement.
It has a capacity of $500 million (about Rs 3,655 crore) with Ivanhoé and Embassy Group investing in an 80:20 ratio.
Embassy Group will lead real estate development, project management, leasing and operations.
The platform will build office parks from the ground up as well as buy partially developed projects in key Indian urban centres.
It will initially focus on southern Indian markets of Bengaluru and Chennai.
The seed asset for the entity is the first phase of the 60-acre Embassy East Business Park located on Whitefield Main Road in Bengaluru.
The phase will be developed on a land parcel of 9 acres with a gross leasable area of 1.3 million square feet.
The park will have a mixed-use community offering co-living, essential retail and other amenities.
“This new venture with Embassy Group will allow us to reinforce our presence in India, a key country in our diversification strategy in Asia,” said Karim Habra, head of Europe and Asia-Pacific, Ivanhoé.
“The healthy build-to-core economics, quality tenant covenants, deepening secondary markets and overall market formalisation make for an interesting opportunity,” said Chanakya Chakravarti, managing director of India at Ivanhoé.