CPP Investments, IndoSpace acquire six logistics parks in India

Canada Pension Plan Investment Board and IndoSpace have acquired six industrial and logistics parks in India valued at $471 million.

The assets were purchased through IndoSpace Core, a joint venture formed in 2017 to buy and develop logistics facilities across the country. CPP Investments will contribute $217 million toward the transaction and holds a 93 per cent stake in the venture.

The six properties cover 380 acres and offer about nine million square feet of leasable space in major logistics hubs including Bengaluru, Chennai, Delhi, Mumbai and Pune. The acquisition expands IndoSpace Core’s position as India’s largest operator of stabilized industrial and logistics real estate.

“India’s logistics sector continues to benefit from strong structural growth, driven by urbanization and the expanding manufacturing footprint,” said Hari Krishna V, managing director, head of real estate India & Mumbai office head at CPP Investments. “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.”

Following the deal, IndoSpace Core’s portfolio will grow to 22 million square feet of leasable area across 948 acres, serving more than 120 domestic and international companies in six major industrial markets.