- The total aggregate equity value of the joint venture will be INR 53 billion (C$866 million), with CPP Investments’ equity commitment at INR 26 billion (C$438 million).
- Joint venture will be seeded with two assets with a gross asset value of INR 80 billion (C$1.3 billion) alongside an intention to further allocate capital investment of up to INR 20 billion (C$333 million) for future acquisitions.
TATA Realty and Infrastructure Limited and Canada Pension Plan Investment Board (“CPP Investments”) today announced a new joint venture to develop and own commercial office space across India. The joint venture will target stabilized and development assets, aiming to reach over INR 50 billion (C$800 million) in assets under management.
The joint venture will be seeded with two assets, Intellion Park Chennai (GLA: 4.6 million square feet) and Intellion Edge Gurgaon, National Capital Region of Delhi (GLA: 1.8 million square feet), which are currently owned and managed by TATA Realty and Infrastructure Limited. Intellion Park Chennai, one of India’s leading office parks, is a LEED platinum rated asset occupied by leading domestic and international businesses.
The joint venture would also pursue Grade A commercial developments in key gateway cities in India, with an equity allocation of INR 20 billion (C$333 million). Cities under consideration include Mumbai, Delhi, Pune, Bengaluru, Hyderabad, and Chennai which collectively contribute the majority of India’s total Grade A office space stock and demand.
Sanjay Dutt, MD & CEO, TATA Realty and Infrastructure Limited, said, “TATA Realty and Infrastructure Limited believes in building centers of excellence that provide tenants with high-quality spaces that enable businesses to grow and evolve. With CPP Investments as a strategic long-term partner, the vision of this joint venture is to provide world-class sustainable office space solutions to a diverse set of businesses. This will enable the opening up of new business opportunities for TATA Realty and Infrastructure Limited, allowing us to accelerate our current growth.”
Hari Krishna V, Managing Director, Head of Real Estate India, CPP Investments, said, “This new relationship with TATA Realty and Infrastructure Limited, one of India’s leading operators, provides an excellent avenue from which to explore opportunities in the fast-growing commercial real estate sector. It is an important step in expanding CPP Investments’ relationships with leaders in the market, to deliver solid long-term adjusted risk-adjusted returns to CPP contributors and beneficiaries.”