Canada’s CPPIB launches JV in India

02 December 2013   Category: News, Asia, India, Canada   By Maya Ando

The Canada Pension Plan Investment Board (CPPIB), an active global pension fund that manages around US$182 billion, has announced its first foray into India’s real estate market through a strategic alliance with local conglomerate Shapoorji Pallonji. The joint venture aims to acquire foreign direct investment (FDI)-compliant, stabilised office buildings in major metropolitan areas of India. CPPIB will commit US$200 million as an initial investment, and control 80% of the shares. The remainder will be owned by the counterpart. In a press release, PPIB’s CEO and President Mark Wiseman confirmed that the fund sees India as a key growth market. Their intention is to make returns from a long-term investment.

CPPIB’s advisor on the project is Vikram Gandhi, founder of VSG Capital Advisors, while Shapoorji Pallonji will be supported locally by its own advisory arm, Shapoorji Pallonji Investment Advisors, led by Rajesh Agarwal.

The fund has been allocating assets to various funds across Asia since its Hong Kong office was opened in 2008. As at September 30, the CPP Fund totalled C$192.8 billion (US$182.02 billion), of which C$22.0 billion was invested in real estate.