Tata Realty and Infrastructure and CPP Investments Form Joint Venture To Develop Commercial Real Estate in Chennai and Gurgaon

Tata Realty and Infrastructure and the Canada Pension Plan Investment Board announced the formation of a new joint venture to build and own commercial office space in India. The joint venture will focus on stable and developing assets, with the goal of managing more than Rs 50 billion (C$800 million) in assets.

The joint venture will be seeded with two properties in the National Capital Region of Delhi, Intellion Park Chennai and Intellion Edge Gurgaon, which are presently owned and managed by Tata Realty and Infrastructure. Intellion Park Chennai is a LEED platinum-certified property that is home to a number of prominent local and international firms.

Additionally, the joint venture will seek Grade A commercial projects in India's important gateway cities, with a Rs 20 billion equity investment. Mumbai, Delhi, Pune, Bengaluru, Hyderabad, and Chennai are included since they jointly account for the bulk of India's overall Grade A office space supply and demand.

"Tata Realty and Infrastructure believes in creating centres of excellence that give tenants with high-quality premises that allow companies to thrive and flourish," stated Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure. 

The joint venture's aim, with CPP Investments as a key long-term partner, is to deliver world-class sustainable office space options to a varied group of enterprises. This would enable Tata Realty and Infrastructure Limited to pursue new business prospects, enabling us to accelerate our existing growth."

"This new connection with Tata Realty and Infrastructure gives a great platform from which to explore prospects in the rapidly rising commercial real estate sector," said Hari Krishna V, MD, head of real estate India, CPP Investments. It is a critical step in extending CPP Investments' ties with industry leaders in order to provide CPP donors and beneficiaries with excellent long-term risk-adjusted returns."