Everstone-backed IndoSpace hits first close of fourth real estate fund with $205 mn infusion from CPP Investments

Canada Pension Plan Investment Board (CPP Investments) has infused $205 million as an anchor investor in property developer IndoSpace’s new real estate fund. The investment marks the first close for IndoSpace Logistics Parks IV (ILP IV), the company’s fourth development vehicle, which targets $600 million of total equity commitments.

CPP Investments had previously partnered with IndoSpace on Core, which is a real estate core fund and also invested in its third real estate fund. Following the investment in ILP IV, the partnership will exceed $1 billion in assets.

“Over the past few years, we have made numerous investments in India’s industrial space, where we see strong demand as the manufacturing sector continues to grow and the e-commerce sector matures. We are pleased to be working with our longstanding partner IndoSpace to further capitalize on opportunities in this space and believe this investment will deliver strong risk adjusted returns for CPP contributors and beneficiaries,” Hari Krishna V, Managing Director, Head of Real Estate India, CPP Investments, said.

With a focus on India’s key logistics real estate markets such as Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune, the new fund will add an additional 25-30 million square feet to IndoSpace’s portfolio. The first three development funds 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. Industrial and logistics infrastructure is a key enabler of economic growth. To meet India’s aim of becoming a $5 trillion economy by 2025, IndoSpace is excited to continue to be one of India’s key infrastructure creators,” Brian Oravec, Managing Partner and CEO, IndoSpace Capital Asia, said.

IndoSpace is a joint venture between private equity firm Everstone Group, Singapore-headquartered logistics facilities provider GLP and industrial real estate firm Realterm. A leading investor, developer, and operator of grade A industrial and logistics real estate in India, IndoSpace has the largest national network of 50 logistics parks with 56 million square feet delivered/under development across 10 cities.

CPP Investments is an investment management organization that manages the investment fund of the 21 million contributors and beneficiaries of the Canada Pension Plan. It has a diversified portfolio of assets with investments around the world in public equities, private equities, real estate, infrastructure and fixed income.

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