TORONTO – The Canada Pension Plan Investment Board will provide debt financing for residential projects in India’s largest cities under a partnership between one of its subsidiaries and Piramal Enterprises.
CPPIB Credit Investments Inc. and India-based Piramal will each commit US$250 million in a fund focused on developments in the Delhi national capital region, Mumbai, Bangalore, Pune and Chennai.
“This opportunity allows us to participate in India’s burgeoning middle class residential sector which has demonstrated compelling fundamentals through ongoing population and income growth, and rapid urbanization,” Graeme Eadie, head of real estate investments for CPPIB, said in a statement.
The CPPIB, one of Canada’s biggest pension funds, invests money not currently needed by the Canada Pension Plan to pay benefits for some 18 million current and retired contributors.
CPPIB had net assets of $192.8 billion as of Sept. 30, up from $188.9 billion at the end of the previous quarter.