News Update

CPPIB, Tata Realty formed a joint venture to invest $700 mn in commercial space

• ByStartupStory     |    April 14, 2022

The Canada Pension Plan Investment Board (CPPIB), one of India’s most active alternative investors, and Tata Realty and Infrastructure Ltd have established a new 50:50 joint venture to construct commercial office space with an equity value of Rs 5,300 crore. The joint venture’s total equity value will be Rs 5,300 crore (about $700 million), with Toronto-based CPPIB investing Rs 2,600 crore (around $342 million), the two companies announced on Tuesday.

The joint venture would be launched with two assets worth Rs 8,000 crore ($1.05 billion) in gross asset value, with the objective of investing up to Rs 2,000 crore ($263 million) in future purchases.

Intellion Park in Chennai, with 4.6 million square feet of gross leasable area, and Intellion Edge in Gurgaon, with 1.8 million square feet of gross leasable area, are the two assets. Tata Realty, a wholly-owned subsidiary of Tata Sons, now owns and manages these assets. The JV would also focus on stabilized and developing assets, with a goal of managing more than Rs 5,000 crore in assets. In addition to Mumbai, Delhi, Pune, Bengaluru, Hyderabad, and Chennai, the new firm would pursue Grade A commercial developments in major gateway cities such as Mumbai, Delhi, Pune, Bengaluru, Hyderabad, and Chennai.

TATA Realty and Infrastructure Ltd is a wholly owned company of Tata Sons with a portfolio of more than 50 projects in 15 locations. It has completed 16.8 million square feet of commercial projects and has another 30 million square feet of projects in the works. TATA Realty and Infrastructure Limited, which has a significant presence in Chennai, Gurugram, and Mumbai, plans to add 10 million square feet in the next three years, bringing its total portfolio to 45 million square feet by 2027.

CPPIB’s total portfolio was valued at C$550.4 billion ($435 billion or Rs 33.10 lakh crore) as of December 31, 2021. Last month, CPPIB announced a partnership with RMZ Corp, a Bengaluru-based real estate firm, to invest Rs 2,650 crore (about $355 million) in developing and acquiring commercial projects across India.

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