CPPIB JV nets C$250m from Chennai office complex sale

You are here : Home » News » CPPIB JV nets C$250m from Chennai office complex sale

Canadian Pension Plan Investment Board (CPPIB) and its joint-venture partner Shapoorji Pallonji Investment Advisors have sold an IT office complex in Chennai, India to Singapore-based Mapletree for about C$250m.

Mapletree, which manages S$46.3bn of assets, gained control of the roughly 250,000 sq.m. SP Infocity Park complex through the acquisition of the Faery Estates JV, according to company announcements.

The three-tower complex is 99% occupied and has a weighted average lease expiry of 5.7 years.

It is located on Old Mahabalipuram Road, one of the largest office precincts for IT tenants in India, and is also close to the city centre.

The transaction is Mapletree’s largest deal in the country to date, building on its purchase of the Global Technology Park development in Bangalore in 2011.

“Our latest acquisition in India, one of the world’s fastest growing economies, will strengthen our presence in this market, and further diversifies our investment property portfolio across Asia,” said Mapletree group CEO Hiew Yoon Khong.

“CPPIB continues to explore new investments alongside current partners as well as new partnerships in the market,” added Andrea Orlandi, managing director – real estate investments at CPPIB.

The new owner has also renamed the office complex as Global Infocity Park Chennai.

Headquartered in Toronto, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments and has C$368.3bn of assets under management.