BENGALURU: Ivanhoé Cambridge, a real estate subsidiary of Canada’s second-largest pension fund Caisse de dépôt et placement du Québec (CDPQ), and the Embassy Group have together launched a commercial office platform with an investment capacity of $500 million.
Ivanhoé Cambridge and Embassy will invest in an 80:20 ratio, with initial focus on the Bengaluru and Chennai. The platform aims to meet demand in the expansion of global capability centres and research and development campuses and will invest in develop-to-core and acquisition of partially developed business park opportunities.
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 nine acres, with 1.3 million sq. ft gross leasable area.
The upcoming business park will be a mixed-use community offering co-living, essential retail and amenities to offer a ‘work-live-play’ experience for the occupiers. 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 commented Karim Habra, head of Europe and Asia-pacific at Ivanhoé Cambridge. “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. We anticipate this trend to accelerate thus supporting long term demand for sustainable, class A offices in mixed use campus environments.”
Mint reported on 18 February that Ivanhoe Cambridge and Embassy have signed the agreement.
Jitu Virwani, chairman and managing director, Embassy Group said, “…Through the Embassy-Ivanhoe commercial office platform, we aspire to develop state-of-the-art business parks in India. We aim to continue delivering a differentiated and holistic workspace ecosystem by integrating concepts like co-living and co-working, expansive office spaces, and easy to access amenities.”
“The healthy build-to-core economics, quality tenant covenants, deepening secondary markets and overall market formalization make for an interesting opportunity,” said Chanakya Chakravarti, Managing Director, India, Ivanhoé Cambridge.