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Abu Dhabi’s sovereign wealth fund Mubadala is among the companies that have submitted bids to buy Canada Pension Plan Investment Board’s (CPPIB) 50% stake in India-based IndoSpace Core, according to Financial Express.
CPPIB has mandated the US investment bank Morgan Stanley to run the sale process, which is expected to fetch $700 million, the Indian financial daily reported citing informed sources.
Dutch pension fund APG, Canadian investor Oxford Properties and Ivanhoe Cambridge, the real estate arm of Canadian pension fund CDPQ, are also in the race.
IndoSpace Core, which owns and develops warehouses, is a joint venture between IndoSpace and CPPIB. IndoSpace owns 80% of the venture.
“The portfolio has matured and CPPIB is looking to exit its investment after six years, and the deal is expected to get done in some time,” the sources noted.
CPPIB initially committed around $500 million to the venture.
IndoSpace Core’s portfolio consists of 50 logistics parks with 57 million sq ft of delivered or under development space, the newspaper said.
IndoSpace Core’s portfolio comprises 50 logistics parks with 57 million sq ft of delivered or under space.
In May, Khaled Abdulla Al Qubaisi, CEO, real estate and infrastructure investments at Mubadala, told the Economic Times, a financial daily, that India is a priority market for the company as it increases its weight allocation and portfolio in the South Asian nation.
(Editing by Seban Scaria seban.scaria@lseg.com )