On Monday, the Canada Pension Plan Investment Board (CPP Investments) announced that it had invested $205 million as an anchor investor in the new real estate fund of premier logistics provider IndoSpace. With a target of $600 million in total equity commitments, the transaction represents the first close for IndoSpace Logistics Parks IV (ILP IV), the company’s fourth development vehicle.
The partnership between CPP Investments and IndoSpace will have assets worth more than $1 billion after the investment in ILP IV. This is CPP Investments and IndoSpace’s most recent business endeavour. IndoSpace Core, the first joint venture, was established in 2017 and currently has India’s largest portfolio of stabilised modern logistics assets. ILP III has also received funding from CPP Investments.
We have made a lot of investments in India’s industrial space over the past few years because there is a lot of demand there as the e-commerce industry develops and the manufacturing sector keeps expanding. According to Hari Krishna V, MD, head of Real Estate India, CPP Investments, “We are pleased to be working with our longtime partner IndoSpace to further capitalise on opportunities in this space and believe that this investment will deliver strong risk adjusted returns for CPP contributors and beneficiaries.
ILP IV will increase IndoSpace’s portfolio by 25–30 million square feet, solidifying its position as the market leader in India. The four main logistics real estate markets in India will be the focus of ILP IV: Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune. Following the launch of the previous three development funds, which together own 56 million square feet of logistics real estate in India, ILP IV was created.
CEO and managing partner of IndoSpace Capital Asia, Brian Oravec, stated: “We are thrilled to continue working with CPP Investments. The CPP Investments commitment to ILP IV is a testament to IndoSpace’s leadership in the industrial and logistics real estate space in India.”
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“ILP IV will allow us to continue to expand our unique national network to better serve our customers. Industrial and logistics infrastructure is a key enabler of economic growth,” Oravec added.