A market expected to double in value by 2032 prompts CPP's $217 million capital commitment
Canada Pension Plan Investment Board committed $217m to acquire six industrial and logistics parks in India, wagering on a warehousing sector expected to double in value to US$37bn by 2032.
According to Reuters, CPP Investments and IndoSpace announced the acquisition of the six parks, valued at $471m, through IndoSpace Core, their joint venture established in 2017.
The deal expands IndoSpace Core's portfolio to 22 million square feet across 948 acres serving over 120 global and domestic companies.
As per the announcement, CPP Investments owns 93 percent of the joint venture and the six assets span 380 acres with approximately nine million square feet of leasable area, located in Bengaluru, Chennai, Delhi, Mumbai, and Pune.
Reuters reported that warehouse developers are facing significant demand as companies position themselves for India's economic expansion and aim to diversify supply chains beyond China.
IndoSpace operates as the largest player in India's industrial and logistics real estate sector with over 60 million square feet developed or under development.
Hari Krishna V, managing director and head of Real Estate India at CPP Investments, said “India's logistics sector continues to grow, driven by urbanization and the expanding manufacturing footprint.”
The partnership with IndoSpace provides opportunities in the sector. CPP Investments expects the acquisition will generate returns for contributors and beneficiaries.
According to CPP Investments, the pension fund invested US$205m in 2023 as part of IndoSpace's fund targeting US$600m in total equity commitments.
The investment reflects CPP's broader strategy of capturing institutional-grade assets in India's emerging industrial real estate market as the country solidifies its position in global manufacturing.
