Canada’s CPPIB investing $210m in India real estate JV with RMZ

Residential and commercial buildings stand in Mumbai, India. Photographer: Dhiraj Singh/Bloomberg

Canada Pension Plan Investment Board (CPPIB), one of the world’s largest pension funds, is investing ₹15 billion ($210 million) in a joint venture in India with RMZ Corp, one of Asia’s largest private-owned real estate owners and developers.

According to the announcement, the JV will develop and hold commercial office spaces in Chennai and Hyderabad. The partnership is expected to see the development of 10.4 million square feet of high-quality commercial office sites.

The three sites that form the transaction are RMZ Nexity (Hyderabad), RMZ Spire (Hyderabad), and RMZ One Paramount (Chennai). These sites are Grade-A developments.

Of the 10.4 million square feet included in the transaction, 7.5 million square feet are already under active development, while construction of the remaining space due to commence in the coming months.

Both CPPIB and RMZ will have an equal stake in the JV firm and the value of the partnership assets, once developed, is estimated to be over $1.5 billion, said Manoj Menda, RMZ’s corporate chairman.

“The partnership with CPP Investments, a globally respected institutional investor, will only strengthen our vision of achieving our hyper-growth strategy target of RMZ 2.0,” Menda added.

Hari Krishna, managing director for real estate – India at CPP Investments, said the joint venture is well placed to meet the growing demand for high-quality sustainable office assets in Chennai and Hyderabad, as demand for collaborative and engaging workspace is expected to grow.

RMZ Corp is one of Asia’s largest privately-owned real estate owners, investors, and developers, and is among the zero debt real estate companies, globally.

The company has over 200 enterprise customers in six Indian cities, with 67 million square feet and $10 billion of assets that are owned and being developed. Last year, it completed the sale of its large commercial portfolio to Brookfield for $2 billion in India’s largest real estate deal.

In its 2021 India Real Estate Market Outlook report, CBRE said overall office leasing volume in India will see an uptick this year as the country remains a preferred global outsourcing destination on the back of low-cost knowledge talent.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.