Construction major Shapoorji Pallonji had tied up with the Abu Dhabi Investment Authority (ADIA), a sovereign fund, to invest in commercial properties in the country, source said.
The combine would invest in large office properties in big cities, the source added.
This is the third such alliance for Shapoorji Pallonji after tie-ups with the Canada Pension Plan Investment Board (CPPIB) and Germany’s Allianz group. The group’s real estate fund management arm, Shapoorji Pallonji Investment Advisors, is expected to take part in the joint investments.
The source clarified that the ADIA and Shapoorji Pallonji had not set up a joint venture (JV) but would invest in a couple of deals together. One of the investments could be in a 800,000 sq ft business park, owned by Adani Realty, in the Bandra-Kurla Complex area of Mumbai, the source added.
Shapoorji Pallonji and the CPPIB set up a JV in 2013 to invest in commercial property. The CPPIB owns 80 per cent in the venture and has committed $200 million. The partners invested $220 million in a IT park in Chennai in 2015.
Shapoorji Pallonji is also setting up a venture with German insurer Allianz to invest in commercial property. “Talks are progressing smoothly,” the source said. “Shapoorji Pallonji receives several such requests to co-invest, but it wants to work with partners with strong execution capabilities and financial strength. It is seeking partners among long-term investors with deep pockets,” the source said.
The sovereign fund has also committed $200 million to the Kotak Realty Fund. HDFC Capital Advisors has raised $400 million from the ADIA to invest in Indian properties.
Another sovereign fund, the Qatar Investment Authority, has tied up with the Bengaluru-based RMZ for investments in commercial property in India.