Canada Pension Plan Investment Board (CPP Investments) and IndoSpace on November 25 announced that its joint venture, IndoSpace Core, is acquiring six industrial and logistics parks, valued at Rs 3,000 crore.
In a press release, the companies said that this acquisition strengthens IndoSpace Core's position as India's largest operator of stabilized industrial and logistics real estate. CPP Investments will commit Rs 1,400 crore to fund the acquisition.
Notably, CPP Investments owns 93 percent of IndoSpace Core.
The six assets which are set to be acquired by the joint venture collectively span across 380 acres with a leasable area of nearly 90 lakh square feet in India’s key logistics markets, including Bengaluru, Chennai, Delhi, Mumbai and Pune. The company said that the six new assets will add on to IndoSpace Core’s portfolio of “fully developed, income-generating parks”.
After the completion of this transaction, IndoSpace Core's portfolio will expand to 220 lakh square feet of leasable area across 948 acres, serving over 120 global and domestic companies across six major industrial hubs of Bengaluru, Chennai, Delhi, Hyderabad, Mumbai and Pune.
The joint venture named IndoSpace Core was established in 2017 to acquire and develop logistics facilities across India.
"This transaction reflects how India’s logistics sector has evolved into a long-term investment story driven by stable demand and institutional confidence," said Anshuman Singh, MD & CEO, IndoSpace. "With over 60 million square feet developed and under development, IndoSpace has established itself as the largest player in India’s industrial and logistics real estate sector. This acquisition further reinforces the strength of our partnership with CPP Investments, built on a shared belief in India’s potential as a global hub," he added.
Hari Krishna V, Managing Director, Head of Real Estate India & Mumbai Office Head at CPP Investments, meanwhile said that India's logistics sector continues to benefit from strong structural growth, driven by urbanization and the expanding manufacturing footprint. "Our longstanding partnership with IndoSpace has enabled us to capture high-quality opportunities in this space. We believe this acquisition will deliver attractive, risk-adjusted returns for CPP contributors and beneficiaries," he added.
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