Realty firm Embassy Group on Tuesday announced partnership with Canadian fund Ivanhoe Cambridge to set up a USD 500 million investment platform to develop commercial properties, primarily premium office space. Ivanhoe Cambridge is a subsidiary of the Caisse de depot et placement du Quebec, one of Canada’s leading institutional fund managers.
As per the agreement, Ivanhoe Cambridge will infuse USD 400 million and Embassy group USD 100 million in the platform.
The Embassy Group said in a statement that it has partnered with Ivanhoe Cambridge to “launch an investment platform focused on office business parks in campus based and mixed use environments in India”.
The Bengaluru-based Embassy Group will be responsible for all real estate development, project management, leasing and operations.
Ivanhoe Cambridge will leverage their expertise in investment.
“The platform will have an investment capacity of USD 500 million with Ivanhoe Cambridge and Embassy investing in an 80:20 ratio, with an initial focus on the Southern Indian markets of Bengaluru and Chennai,” the statement said.
The platform will invest in develop-to-core and acquisition of partially developed business park opportunities.
Both the partners seek to cater to the preferences of the millennial workforce in providing flexible workplaces and building sustainable communities across key Indian urban centres.
The concept aims at meeting the demand in the expansion of Global Capability Centres and Research and Development Campuses.
The seed asset for the platform will be the first phase of the 60-acre Embassy East Business Park located in Whitefield Main Road in Bengaluru.
The first phase will be developed on a land parcel of 9 acres, with a gross leasable area of 1.3 million sq ft.
The upcoming business park also offers co-living and retail space.
The first phase of the project is expected to be ready for occupancy by early 2024.
“This new venture with Embassy will allow us to reinforce our presence in India, a key country in our diversification strategy in Asia,” said Karim Habra, Head of Europe & Asia-pacific at Ivanhoe Cambridge.
Over the last couple of decades, he said several global corporations have acknowledged India as a scalable global innovation hub catalysed by a deep, world-class talent pool.
“We anticipate this trend to accelerate thus supporting long-term demand for sustainable, class A offices in mixed use campus environments,” he added.
Chanakya Chakravarti, Managing Director, India, at Ivanhoe Cambridge, said “We look forward to collaborating with Embassy, an experienced developer with a formidable execution track record across market cycles, in expanding our portfolio.”
Ivanhoe Cambridge develops and invests in high-quality real estate properties, projects and companies. It invests internationally alongside strategic partners and major real estate funds that are leaders in their markets.
Founded in 1993, the Embassy Group is one India’s largest real estate conglomerates with a broad portfolio of over 62 million sq ft of prime commercial, residential and industrial space in India.
It has partnered with global investors including Blackstone and Warburg Pincus at the group and project levels.
Embassy was a sponsor of India’s first REIT, the largest office REIT in the Asia Pacific.
