Canada Pension Plan Investment Board and IndoSpace form joint venture 'IndoSpace Core'
May 16, 2017: Canada Pension Plan Investment Board (CPPIB) and IndoSpace, the warehousing and logistics real estate arm of Everstone Group, have announced the creation of IndoSpace Core, a joint venture that will focus on acquiring and developing modern logistics facilities in India. CPPIB has initially committed approximately $500 million to the joint venture and will own a significant majority stake.
IndoSpace Capital Asia will manage the new entity, said Indospace in a release.
IndoSpace Core has committed to acquire 13 well-located industrial and logistics parks totalling approximately 14 million square feet, from current IndoSpace development funds. The joint venture will acquire the first nine facilities totalling approximately nine million square feet at closing, and the additional facilities within 24 months. The assets are prime industrial properties located in the top industrial and logistics hubs in India, including Chennai, Pune, Mumbai, Delhi and Bangalore.
Andrea Orlandi, Managing Director, Head of Real Estate Investments – Europe, CPPIB, said, “This joint venture gives us immediate scale and access to a significant development pipeline in a rapidly growing sector. 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.”
IndoSpace Core has the option to acquire additional industrial and logistics parks totalling approximately 11 million square feet, which are currently being developed by IndoSpace funds and are worth approximately $700 million. IndoSpace Core will also opportunistically acquire stabilized assets from third parties across India.
Sameer Sain, co-founder and managing partner, Everstone Group, said, “IndoSpace is excited to partner with CPPIB, one of the premier owners of industrial real estate globally. The combination of our expertise and a strong macro backdrop, including Make in India, the GST rollout and growth in e-commerce, will provide significant opportunities for this joint venture.”
