CPPIB, Tata Realty ink Rs 5,300-crore JV to develop offices in India

The Canada Pension Plan Investment Board (CPPIB) and Tata Realty and Infrastructure (TRIL) have entered into a joint venture to develop and own commercial office space across India. The joint investment platform will target stabilised and development assets, aiming to reach over ₹13,000 crore in assets under management. The total aggregate equity value of the joint venture will be ₹5,300 crore, with CPPIB's equity commitment of ₹2,600 crore.

"This is the beginning of a very strong partnership," said Sanjay Dutt, CEO, Tata Realty and Infrastructure. "With CPPIB 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 Tata Realty and Infrastructure, allowing us to accelerate our current growth."

Tata Sons' real estate development arm will seed platform with 2 assets, Intellion Park Chennai and Intellion Edge Gurgaon, NCR of Delhi, owned and managed by the developer. Gross asset value of these assets is ₹8,000 crore.

Intellion Edge has gross leasable area of 1.8 million sq ft, of which 50% is ready and operational. Intellion Park has a total gross leasable area of 4.6 million sq ft and is fully operational.

"This new relationship with Tata Realty & Infrastructure provides an excellent avenue from which to explore opportunities in the fast-growing commercial real estate sector," said Hari Krishna V, managing director, head of real estate India, CPPIB. "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."

ET was first to break the story in June that CPPIB and Tata Realty were in talks to set up this office development platform in India.