A INR150 billion (US$1.8 billion) tech-focused Indian real estate platform represents formed by Ivanhoé Cambridge – the real estate arm of Canadian pension fund CDPQ – and Singaporean state owned investor Temasek’s Mapletree represents a landmark leap forward in foreign real estate investment in India.
In what is expected to become the largest investment platforms in the Indian real estate office sector, properties and projects have already been identified in the bid to establish high-quality offices in the major cities throughout India. For its part, Ivanhoe Cambridge is bringing in its expertise and experience as an institutional investor while Mapletree will be offering its property management services.
Both investors already have a presence in the market sector. Last year, Ivanhoé Cambridge partnered with real estate firm Lodha and Bain Capital to build a US$1 billion platform of logistics and light industrial parks, as well as in-city fulfillment centers, with each partner having a third equity interest. The first project is a 110-acre logistics and industrial park development at Palava, Mumbai. In the tech and office sector, in 2021 Ivanhoé Cambridge pledged US$100 million to develop about one million square feet of labspace in the life sciences cluster Hyderabad’s Genome Valley. In the same year, it inked a deal with Embassy Group for a commercial office platform, providing US$150 million of initial capital for its 80% stake in the partnership.
Ivanhoé has a C$7 billion (US$5.2 billion) Asia-Pacific portfolio, representing around 8% of its total AUM, with a mandate to develop and invest in high-quality properties, projects and companies that are shaping the urban fabric of cities around the world. It aims to double its allocation to the region in the medium-term.
Mapletree reported global assets under management of S$78.7 billion (US$59 billion) in FY2021/22 and its aiming to reach S$80-90 billion (US$60-68 billion) in FY2022/23. Presently, it has four properties in India: Global Infocity Park in Chennai; Global Technology Park in Bengaluru; Mapletree Logistics Park Chakan in Pune; and Mapletree Logistics Park Talegaon in Pune.
Quek Kwang Meng, Regional Chief Executive Officer, India, Mapletree, said: “There is a considerable synergy in this strategic partnership as it pools together leading expertise across the real estate value chain from two globally recognised firms. It will allow us to strengthen our presence in India, and expand our portfolio in the commercial sector efficiently, which we believe has good growth potential in the coming years.”
Speaking on the new venture, George Agethen, Co-Head Asia-Pacific, Ivanhoé Cambridge, said: “We are particularly pleased to find such great alignment with Mapletree for India, on our values, ESG ambitions and their 15-year experience in India. This partnership continues our growth plans for the APAC region, bringing diversification to our portfolio and resilience to our returns.”
Canadian public pension funds are paying increasing attention to Indian real estate. In September, the Ontario Teachers’ Pension Plan Board (OTPP) established a new office in India, as it ramps up its exposure to the South Asian heavyweight in emerging markets.
“India is an attractive investment destination and will be one of our growth markets over the next 5-10 years. It has a large, growing, and dynamic economy, with openness to foreign capital which makes it a strategically important market for us,” said Jo Taylor, OTPP's President and Chief Executive Officer.
Temasek’s Singaporean stablemate, the sovereign wealth fund GIC, is also ramping up its exposure to Indian commercial real estate. In November, GIC formed a new platform with ESR to acquire US$600 million of income-producing core industrial and logistics assets in India, with the Singaporean sovereign wealth fund contributing 80% of the capital and ESR 20%. The Core JV represents an extension of the existing partnership in India between the two, which was initiated in 2020 with a commitment of US$750 million and the same 80:20 split. The partners are anticipating a surge in demand for logistics and industrial real estate, fuelled by India’s e-commerce growth and expanding industrial base.
