CPP Investments (CPPIB), Canada’s largest pension fund manager, has dropped its plans to sell stake in IndoSpace Core, its equal joint venture with IndoSpace, a developer of logistics parks promoted by Southeast Asia-focused Everstone Capital and US-based Realterm, people in the know said.
CPPIB did not get the desired valuation from bidders, sources said. “Also, not many in the market want to buy just 50%. Most of the investors want to buy the whole stake,” one of the sources added. Marquee global investors like the UAE’s sovereign wealth fund Mubadala, Dutch pension fund APG, Canadian investor Oxford Properties, and Ivanhoe Cambridge, the real estate arm of Canadian pension fund CDPQ, had put in bids to buy CPPIB’s 50% stake in IndoSpace Core.
The deal was expected to be around $700 million (Rs 5,810 crore) and CPPIB had given the mandate to Morgan Stanley to run the sale process, sources said, adding the portfolio matured and CPPIB was looking to exit its investment after holding it for six years.
When contacted, the CPPIB spokesperson declined to comment on the matter. IndoSpace Core was formed in 2017 to focus on acquiring and developing modern logistics facilities in the country. CPPIB initially committed about $500 million in the venture. IndoSpace Core has 17 industrial and logistic parks, housed under 22 special purpose vehicles (SPVs), across five key markets of Bengaluru, Chennai, Hyderabad, NCR, and Pune.
Its asset portfolio includes completed area of 14 million sq ft as on July 31, 2023, according Icra. The SPVs are fully owned by the same holding company, IndoSpace Logistics Parks Core Pte Ltd. The assets have a diversified as well as reputed tenant mix with top 10 tenants contributing 44% of the gross rentals as on July 31, 2023.
Earlier last year, CPPIB invested over $205 million as an anchor investor in IndoSpace’s new fund called IndoSpace Logistics Parks IV. IndoSpace Core also acquired Amazon’s Fulfilment Centre in Hyderabad from GMR Group earlier last year.
CPPIB has been one of the most active investors in the country. It committed $400 million to two fund managers — $300 million to an asset manager that focuses on structured and private credit opportunities and $100 million to Kedaara Capital Fund IV which will focus on mid-market buyout and minority growth investments — it said in May this year.
The company did not name the asset manager managing its $300 million. CPPIB said it invested `18,200 crore in the units of National Highways Infra Trust (NHIT), an infrastructure investment trust sponsored by the National Highways Authority of India.
CPPIB invested an additional C$540 million in Interise Trust (formerly known as IndInfravit Trust), its Indian toll roads portfolio company, in which it now holds 60.8% stake, to help fund the acquisition of four operating road concessions.
From: financialexpress
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