Canada Pension Plan Investment Board, Toronto, committed $205 million to IndoSpace Logistics Parks IV as an anchor investor in real estate company IndoSpace Capital Asia's latest fund, according to a statement Monday.
The fund targets $600 million of total equity commitments and will focus on India's largest logistics real estate markets: Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune.
The Canadian pension fund, which had C$529 billion ($386.4 billion) in assets as of Sept. 30, has invested with IndoSpace before. It contributed to the IndoSpace Logistics Parks III, which raised $580 million in equity commitments in 2018, and established a joint venture called IndoSpace Core in 2017. In total, the partnership between CPP Investments and Indospace exceeds $1 billion, the statement said.
The first three development funds own a combined total of 56 million square feet of modern logistics real estate in India, with ILP IV adding a further 25 million to 30 million square feet to the portfolio.
"We see strong demand (in India's industrial space) as the manufacturing sector continues to grow and the e-commerce sector matures," said Hari Krishna V, managing director, head of real estate India at CPP Investments, in the statement.
