(Bloomberg) -- Ivanhoé Cambridge, the real estate unit of Canada's Caisse de dépôt et placement du Québec, will partner with Jitendra Virwani's Embassy Group to develop commercial properties in southern India.
The two companies have formed a $500 million venture with Ivanhoe accounting for 80% of the share, the two companies said in a statement. The partners will initially focus on Bangalore and Chennai, two cities home to India's tech companies, and which are attracting global firms to set up research and development campuses.
India's commercial office market, which remained largely unscathed from the coronavirous pandemic, has lured some of the world's largest yield chasing investors including Blackstone Group Inc. and Brookfield Asset Management Inc. Over the last two years the country has seen three successful real estate investment trust listings offering investors an attractive exit option.
Read more: Blackstone, Brookfield Bet on India Office Reits For Yield
“Over the last couple of decades, several global corporations have acknowledged India as a scalable global innovation hub catalyzed by a deep, world-class talent pool,” Karim Habra, head of Europe and Asia-pacific at Ivanhoé Cambridge said in the statement. “We anticipate this trend to accelerate.”
The Bangalore-based Embassy Group that listed India's first real estate investment trust will lead all real estate development, project management, leasing and operations, according to the statement.
The first asset the platform will develop will be the initial phase of the 60-acre Embassy East Business Park located in Whitefield, Bangalore.
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