Canada Pension Plan Investment Board (CPPIB) and Shapoorji Pallonji Group today announced the formation of a strategic alliance to acquire foreign direct investment (FDI)-compliant, stabilized office buildings in the major metropolitan areas of India. CPPIB will own 80% of the venture with an initial equity commitment of US$200 million.

"We are delighted to be partnering with Shapoorji Pallonji to launch our first real estate venture in India focusing on stabilized office properties in major urban centres," said Mark Wiseman, President & CEO, CPPIB. "India is a key growth market for CPPIB and, as a long-term investor, we believe there are attractive investment opportunities across various sectors. We look forward to working alongside Shapoorji Pallonji, a well-aligned and experienced operator/developer in India."

"We are pleased to be entering into this strategic alliance with CPPIB as a like-minded long-term global investor," said Mr. Shapoor P. Mistry, Chairman of the Shapoorji Pallonji Group. "Shapoorji Pallonji has a remarkable performance track record and reputation in the market for sourcing, delivering and executing value-added strategies. We intend to use our experience of over 148 years in the Indian real estate market for the long-term success of this platform."

The venture will target FDI-compliant office assets that are substantially leased to prominent tenants, with scope for value-add returns from active asset management. The venture will be supported locally by the Shapoorji Pallonji Investment Advisors team led by Rajesh Agarwal. CPPIB was advised by Vikram Gandhi, founder of VSG Capital Advisors, and Senior Advisor for investment opportunities in India.