Tata Realty, CPP Investments ink ₹5,300 cr JV
PremiumThe joint venture will be seeded with two assets - Intellion Park Chennai and Intellion Edge Gurgaon, which are currently owned and managed by Tata Realty, a subsidiary of Tata Sons
BENGALURU : Tata Realty and Infrastructure Ltd (TRIL), a unit of Tata Sons Pvt. Ltd, and Canada Pension Plan Investment Board (CPP Investments) on Tuesday said they have formed a joint venture (JV) to develop and operate commercial office properties across India.
The alliance will target rent-generating properties and those that are under development. The JV will have a total equity value of ₹5,300 crore with CPP Investments putting in around ₹2,600 crore.
The partnership will be seeded with two assets—Intellion Park, Chennai, and Intellion Edge, Gurugram, which are currently owned and managed by TRIL. It would also pursue other commercial office developments in Mumbai, Delhi, Pune, Bengaluru, Hyderabad, and Chennai, with an equity investment of ₹2,000 crore.
This is CPP Investments’ second office real estate JV in India in 2022. In March, CPP and Bengaluru-based RMZ Corp. said they have formed a second JV for commercial office developments. CPP will invest around ₹2,650 crore into the JV to help acquire and develop projects.
“With CPP Investments as a strategic long-term partner, the vision of this joint venture is to provide world-class sustainable office space solutions to a diverse set of businesses. This will enable the opening up of new business opportunities for the company, allowing us to accelerate our current growth," said Sanjay Dutt, managing director (MD) and chief executive officer, TRIL.
Tata Realty has developed around 16.8 million sq. ft of commercial projects and has 30 million sq. ft under development and planning stage. It aims to add 10 million sq. ft over the next three years, with a target to have a portfolio of 45 million sq, ft by 2027.
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Hari Krishna V., MD, head of Real Estate India, CPP Investments said the alliance with TRIL “provides an excellent avenue from which to explore opportunities in the fast-growing 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," he said.