Real estate player Embassy Group and Ivanhoe Cambridge, a subsidiary of Canada's institutional fund managers CDPQ, have partnered to launch a $500-million investment fund focused on office business parks. While the Embassy Group will lead all real estate development, project management, leasing and operations, Ivanhoe Cambridge will leverage their expertise in investment.
The Canadian partner and Embassy will be investing in an 80:20 ratio, with an initial focus on the southern Indian markets of Bengaluru and Chennai.
“Through the Embassy-Ivanhoé commercial office platform, we aspire to develop state-of-the-art business parks in India. We aim to continue delivering a differentiated and holistic workspace ecosystem by integrating concepts like co-living and co-working, expansive office spaces, and easy to access amenities,” said Jitu Virwani, chairman and managing director, Embassy Group.
The platform will invest in the development and acquisition of partially developed business park opportunities to cater to the preferences of the millennial workforce in providing flexible workplaces and building sustainable communities across key urban centres.
The seed asset for the platform will be the first phase of the 60-acre Embassy East Business Park in Bengaluru. The first phase will be developed on a land parcel of 9 acres, with a gross leasable area of 1.3 million square feet having co-living, essential retail and amenities. The first phase of the project is expected to be ready for occupancy by early 2024.
“Over the last couple of decades, several global corporations have acknowledged India as a scalable global innovation hub catalyzed by a deep, world-class talent pool. We anticipate this trend to accelerate thus supporting long term demand for sustainable, class A offices in mixed use campus environments,” said Karim Habra, head of Europe & Asia-pacific at Ivanhoe Cambridge.
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