In a significant development last week, Pension Plan Investment Board (CPPIB) of Canada and IndoSpace, country’s leading player in modern logistics space decided to forge a joint venture to further push the industrial and logistics real estate business. CPPIB has announced pumping in upto $1.2 billion in the joint venture firm IndoSpace Core in further developing state-of-the-art logistics facilities in the country. The deal is believed to be the largest in the logistics real estate space till date.
“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,” the two companies said in a joint statement.
The JV is expected to acquire 13 industrial and logistics parks amounting over 14 million sq ft space. “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, MD, Head of Real Estate Investments – Europe, CPPIB.