CPP Investments and IndoSpace joint venture purchases six logistics parks for $300 million

IndoSpace Core, a joint venture established by the warehousing and logistics firm IndoSpace and the Canadian pension fund CPP Investments, has announced the purchase of six logistics parks across five markets, for a value of $300 million (around Rs 3,000 crore). The six properties have leasable space of around nine million square feet, expanding the joint venture's portfolio to 22 million square feet.

The new parks are located in Mumbai, Delhi, Chennai, Bengaluru, and Pune. In a release, IndoSpace Core stated that CPP Investments is committing around Rs 1,400 crore to fund the acquisition, adding that the new additions "strengthens" its position of being India's largest operator of developed, rent-generating real estate parks.

"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," said Hari Krishna V, managing director and head of real estate, India, CPP Investments.

IndoSpace, which has a total of 60 million square feet in industrial and logistics space built or under development, added that the transaction demonstrates the strength of the logistics sector in India.