Shapoorji Pallonji Group and Canada Pension Plan Investment Board (CPPIB) on Thursday announced the formation of a strategic alliance to acquire foreign direct investment-compliant, stabilised office buildings in the major metropolitan areas of the country.
CPPIB will own 80% 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 statement.
Shapoorji Pallonji has a remarkable performance track record and reputation in the market for sourcing, delivering and executing value-added strategies and the company intends to use this experience of over 148 years in the Indian realty 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.
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, and Senior Advisor for investment opportunities in India.