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CPP Investments commits $205 million to Indospace’s new fund to build industrial, logistics parks in India

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Canada Pension Plan Investment Board has committed to invest USD 205 million in IndoSpace’s new real estate fund for the development of industrial and logistics parks in India. IndoSpace is one of the largest investors, developers and operators of prime industrial and logistics real estate in India. It has delivered/under development a national network of 50 logistics parks with 56 million square meters in 10 cities.

According to a statement, the investment by Canada Pension Plan Investment Board (CPP Investments) marks the first closure for IndoSpace Logistics Parks IV (ILP IV), the company’s fourth development vehicle targeting $600 million in total equity commitments.

CPP Investments is an anchor investor in the new fund.

This is the latest collaboration between CPP Investments and IndoSpace.

The first joint venture, IndoSpace Core, was established in 2017 and now owns a large portfolio of stabilized modern logistics assets in India.

CPP Investments has also invested in ILP III.

Following the investment in ILP IV, the partnership will exceed $1 billion in assets.

The new fund ILP IV adds another 25-30 million square feet to the IndoSpace portfolio.

ILP IV will target India’s largest logistics real estate markets such as Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune.

The establishment of ILP IV follows the first three development funds, which together have a total of 56 million square meters of modern logistics real estate in India.

Hari Krishna V, Managing Director, Head of Real Estate India, CPP Investments, said: “In recent years we have made numerous investments in India’s industrial space where we see strong demand as the manufacturing sector continues to grow and the e-commerce sector grow up.”

Brian Oravec, Managing Partner and CEO, IndoSpace Capital Asia, said: “CPP Investments’ commitment to ILP IV is a testament to IndoSpace’s leadership in industrial and logistics real estate in India. ILP IV enables us to deliver our unique national network to better serve our customers.”

CPP Investments is a professional investment management organization that manages the Fund in the best interests of the Canada Pension Plan’s 21 million contributors and beneficiaries.

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