CPPIB forms joint venture with IndoSpace

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Cyril Amarchand Mangaldas (CAM) advised the Canada Pension Plan Investment Board (CPPIB) when it recently entered into a joint venture agreement with IndoSpace, India’s largest developer of modern industrial and logistics real estate, for the creation of IndoSpace Core, which will focus on acquiring and developing modern logistics facilities in India.

CAM’s team was led by Mumbai-based corporate and investment funds partner Shagoofa Rashid Khan and included real estate partners Hiral Motta, Gyanendra Kumar, Abhilash Pillai, Namrata Kolar and Mridul Kumbalath. Mumbai-based competition law partner Bharat Budholia advised on the competition law aspects of the transaction.

Referring to the transaction as a “landmark deal in the warehousing and industrial parks segment”, Khan told India Business Law Journal that it “signals the revival of investor confidence for large investments in real estate-backed sectors”.

S&R Associates advised IndoSpace – a joint venture between private equity and real estate players Everstone Group and Realterm that has properties in North America, Europe and India. S&R’s team comprised partners Sandip Bhagat, Rajat Sethi and Sudip Mahapatra, and associates Dhruv Nath, Jinaly Dani, Aditya Mohanty, Henna Kapadia and Anita Srinivasan.

Mahapatra told India Business Law Journal that it “was a complex and innovative transaction combining cross-border joint venture formation with private equity exits, fund formation and real estate aspects”.

Morrison & Foerster was international counsel to IndoSpace. Its lead partners were private equity real estate specialists Eric Piesner and Shirin Tang, Asia funds practice head Jason Nelms, and India practice head Amit Kataria.

Declining to comment on the specifics of the transaction, Tang told India Business Law Journal that the transaction “falls squarely into two practice categories that we excel in, namely, private equity real estate, and our India transactional practice”.

CPPIB said that it had “initially committed approximately US$500 million to the joint venture and will own a significant majority stake”. IndoSpace Capital Asia will manage the new entity.

IndoSpace Core has committed to acquire 13 industrial and logistics parks totalling approximately 14 million square feet, from current IndoSpace development funds.