IndoSpace’s new real estate fund has raised $205 million from the Canada Pension Plan Investment Board as an anchor investor.
With the latest investment, the company has marked the first close for its Logistics Parks IV (ILP IV), the company’s fourth development vehicle, and targets $600 million of total equity commitments, according to the company.
Logistics assets
IndoSpace Core holds a portfolio of logistics assets in India. Following the investment in ILP IV, the partnership will exceed $1 billion in assets, said the company. ILP IV will focus on the logistics, real estate markets, including Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune, and will add an additional 25–30 million square feet to the IndoSpace portfolio.
“We see strong demand as the manufacturing sector continues to grow and the e-commerce sector matures, and in the past few years, we have made numerous investments in India’s industrial space. We will work with our longstanding partner IndoSpace to further capitalise on opportunities in this space and believe this investment will deliver strong risk-adjusted returns for CPP contributors and beneficiaries,” said Hari Krishna V, Managing Director, Head of Real Estate India, CPP Investments.
Development funds
The establishment of ILP IV follows from the first three development funds, which have a combined total of 56 million square feet of modern logistics real estate in India.
“ILP IV will allow us to continue to expand our unique national network to better serve our customers. To meet the country’s aim of becoming a $5 trillion economy by 2025, the company is excited to continue to be one of India’s key infrastructure creators,” said Brian Oravec, Managing Partner and CEO, IndoSpace Capital Asia.