Canada Pension Plan Investment Board (CPPIB) has acquired a majority stake in IndoSpace, the warehousing and logistics real estate arm of the Everstone Group. The pension fund has committed $500 million for the majority stake and will acquire 13 industrial and logistics parks totalling 14 million square feet as part of the deal, the companies announced on Monday. IndoSpace and CPPIB also agreed to create a joint venture called IndoSpace Core that will focus on acquiring and developing logistics facilities in India. IndoSpace, a joint venture between Everstone Capital and Realterm Global, has a pan-India presence and counts global and domestic companies such as Nissan, Procter & Gamble, L'Oréal, DHL, Samsung, Kuo and Levi's as its tenants. The company holds all its assets through separate special purpose vehicles. IndoSpace Capital Asia will manage the new entity. “The venture also has the option to acquire an existing pipeline worth approximately $700 million as well as participate in a future development pipeline,“ the company said in its release. The company had plans to develop an additional 40 million sq. ft. of warehouses over the next five years, said officials in the know. “The strong fundamentals underlying the Indian manufacturing and retail sectors and growth in ecommerce, combined with the low stock of highquality modern industrial real estate in the country, make this a compelling investment opportunity for longterm investors,“ said Andrea Orlandi, head of real estate investments -Europe, CPPIB. “This joint venture gives us immediate scale and access to a significant development pipeline in a rapidly growing sector.“ As of December 31, CPPIB's real estate and infrastructure assets were worth $51 billion. Logistics are 8.8% of that, or $4.5 billion. This takeover will be CPPIB's first in the logistics sector in India.