Embassy Group in partnership with Ivanhoe Cambridge, the real estate subsidiary of Canada’s second-largest pension fund, has launched a commercial office platform with an investment of $500 million. This is Ivanhoe Cambridge’s first direct investment in India’s commercial office sector.
“We would like to focus on commercial office and warehousing as the primary theme in India. The office sector has gone through a metamorphosis
with institutional capital and ownership patterns having changed. Business campuses are getting more evolved. There has been an ongoing churn in the residential sector and it’s becoming more institutionalized," said Chanakya Chakravarti, managing director, India, Ivanhoe Cambridge.
The Canadian investor had so far backed logistics and residential projects in India. In 2017, Ivanhoe Cambridge and Quadreal Property Group invested around $400 million in Logos India to modernize logistics facilities in India, according to a report by Mint.
The investor, along with Piramal Enterprises Ltd, infused Rs 500 crore in Lodha Group’s Palava township project in 2019, its first transaction, two years after it launched the Piramal Ivanhoe Residential Equity Fund.
Ivanhoe Cambridge and Embassy will invest at 80:20 ratio, with an initial focus on Bengaluru and Chennai. The platform will invest in develop-to-core and acquisition of partially developed business parks.
