ANNAPOLIS, MD (June 6, 2017) – Canada Pension Plan Investment Board (CPPIB) and the industrial and logistics real estate development platform, IndoSpace Logistics Parks (IndoSpace), have formed a joint venture named IndoSpace Core principally to acquire modern logistics facilities across India. The Canadian pension fund will initially commit approximately $500 million to the joint venture.
“We are extremely pleased with our progress building Indospace, in partnership with Everstone, over the last 10 years into the leading owner and developer of logistics and industrial spaces in India,” said Ken Code, Co-Founder of Realterm. “The Indian industrial and logistics warehousing industry is growing rapidly, and is one of the real estate industry’s great global growth stories. IndoSpace is excited to partner with CPPIB. This joint venture ensures we will be able to control our development pipeline and maintain our dominance well into the future.”
IndoSpace, co-sponsored by Realterm and Singapore-based Everstone Capital, funds its development activities through a commingled development fund series. IndoSpace is currently raising capital for the third fund in the series.
IndoSpace Core has committed to acquire 13 industrial and logistics parks, totalling approximately 14 million sq. ft, from current IndoSpace development funds. The assets are prime industrial properties located in the top industrial and logistics hubs in India, including Chennai, Pune, Mumbai, Delhi and Bengaluru. IndoSpace tenants in these parks include companies such as Amazon, Nissan, PepsiCo, DHL, Leoni, Steelcase, Kubota, Ericsson, Bosch and Delphi.
“The strong fundamentals underlying the Indian manufacturing and retail sectors and growth in e-commerce, combined with the low stock of high-quality modern industrial real estate in the country, make this a compelling investment opportunity for a long-term investor like CPPIB,” said Andrea Orlandi, managing director and head of real estate investments, Europe, CPPIB. “IndoSpace is the leading industrial platform in India and we look forward to building a long-term partnership with IndoSpace and its sponsors through this joint venture.”
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Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 20 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, São Paulo and Sydney, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2016, the CPP Fund totalled C$298.1 billion. For more information about CPPIB, please visit www.cppib.com.
Realterm is a $2.6+ billion AUM real estate operator executing differentiated private equity strategies focused on durable insights into the supply and demand of real assets at the intersection of the global supply chain and evolving consumption trends. Realterm currently manages over $1.6 billion of partner equity through three logistics-oriented commingled private equity fund series: Realterm Airport Logistics Properties (RALP), an open-end investment vehicle investing into high flow-through on-airport logistics real estate and aviation support facilities throughout the U.S. and Canada; the Realterm Logistics Fund (RLF) series, a closed-end, value-added fund series investing into high flow-through surface transportation-related logistics real estate throughout the U.S.; and IndoSpace Logistics Parks (ILP), a closed-end, opportunistic fund series investing into warehouse and logistics real estate throughout the top industrial markets in India. Additional information may be found at www.realterm.com.
About Everstone Capital
Everstone Capital is a premier India and Southeast Asia focused private equity and real estate investment firm with assets under management of approximately US $4 billion. Everstone has over 200 people working across six offices—Singapore, Mumbai, Delhi, Bengaluru, Mauritius and London. The firm’s strong presence and network in India and Southeast Asia allows its existing and new portfolio businesses to build operations in the region and beyond. Everstone has been awarded ‘Mid-Market Firm of the Year in Asia’ for 2016, as well as ‘Private Equity Firm of the Year in India’ by Private Equity International for six consecutive years from 2011 to 2016. For more information, visit www.everstonecapital.com.