The Canada Pension Plan Investment Board (CPPIB) will invest Rs 2,600 crore in Tata Realty and Infrastructure's two premium commercial office buildings in Chennai and Gurugram to acquire a 49% stake. Its joint venture (JV) plans to spend an additional Rs 2,000 crore inland and finished assets for future expansion. Sanjay Dutt, Tata Realty and Infrastructure MD and CEO, told the media that the company created a partnership with CPPIB to build and own commercial real estate assets because it is optimistic about the future potential of the office market in major Indian cities. CPPIB will purchase a 49% share in two projects: Intellion Park Chennai, which has 4.6 million sq ft of gross leasable space, and Intellion Edge Gurugram, which has 1.8 million sq ft of gross leasable area. The Chennai project is completed, whereas the Gurugram project is half-finished. The overall aggregate equity value of the joint venture would be Rs 5,300 crore, CPPIB would invest Rs 2,600 crore as equity, and Tata Realty will hold the remaining 51% stake. After completion, the total gross asset value of these two projects would be Rs 8,000 crore. The JV partners plan to allocate capital investment of up to Rs 2,000 crore for upcoming acquisitions of land parcels and completed assets. The JV would focus on stabilised and developing assets to manage assets of over Rs 5,000 crore. The firm has already finished a commercial portfolio of 7.5 million sq ft, and 14 million sq ft is under different stages of design and development from its existing land bank. Dutt said that with CPPIB investments, the vision of this joint venture is to give high-class sustainable office space solutions to various kinds of businesses. He said it would facilitate the opening up of new business opportunities for the company and accelerate its existing growth. Image Source Also read: CPPIB to infuse Rs 26.5 bn in JV with RMZ to develop office spaces