The Canada Pension Plan Investment Board is entering a joint venture to develop office space in major Indian cities.
According to the terms of a deal reached with Tata Realty and Infrastructure Ltd., the joint venture seeks to developing a portfolio of yet-to-be-acquired properties with a targeted value of $800 million. The cities under consideration for property acquisitions by the joint venture are Bengaluru, Chennai, Delhi, Hyderabad, Mumbai and Pune. Collectively, these cities contain the majority of India’s total premium office space stock and demand.
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In a press release, Hari Krishna V, managing director and head of real estate in India for the CPPIB, said working with Tata Realty will provide the institutional investor with opportunities in the South Asian country’s booming commercial real estate sector. “It is an important step in expanding CPP Investments’ relationships with leaders in the market, to deliver solid long-term adjusted risk-adjusted returns to CPP contributors and beneficiaries.”
In other news, the Ontario Teachers’ Pension Plan’s real estate arm is entering a joint venture to redevelop a London office tower.
The Cadillac Fairview Corp. reached a deal with Stanhope, a British development company, to refurbish a 10-storey building located in the City of London. Zoned for commercial and retail use, the building’s ground floor is currently occupied by a grocery store while the upper floors contain about 250,000 square metres of leasable office space.
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The move is part of a strategy to expand Cadillac Fairview’s presence in the U.K.’s commercial real estate market, according to a press release.
Jenny Hammarlund, managing director and head of Europe at Cadillac Fairview, said the deal follows on the success of an earlier joint venture — a £700 million redevelopment project in Oxford. “We see continuing opportunities for high quality, differentiated office [space], particularly in London, and this is a long-term investment in the future success of the City of London.”
The Public Sector Pension Investment Board is also entering a partnership for London real estate development. The partnership, with Aviva Investors, will refurbish a building in central London with 13,700 square metres of office and retail space. It follows a series of co-investment projects between the two organizations, including another London-based project — a 10-hectare mixed-use development.
The redevelopment work will be performed by the Structure Tone Group Inc., a local interior and renovation construction company. Some work will also be done to improve the building’s facade, expand its roof and to create communal garden spaces.
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