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Embassy partners Canadian fund to set up US$ 500 million platform to build commercial properties

IBEF:  March 03, 2021

Embassy Group, based in Bengaluru, announced a collaboration with Ivanhoe Cambridge, a Canadian investment company, on Tuesday to establish a US$ 500 million investment platform to develop commercial properties, mainly premium office space.

Ivanhoe Cambridge is a subsidiary of the Caisse de dépôt et placement du Québec, a leading institutional fund manager in Canada.

As per the deal, Ivanhoe Cambridge will invest US$ 400 million in the platform and Embassy Group will invest US$ 100 million.

The Embassy Group has collaborated with Ivanhoe Cambridge to launch an investment platform based on office business parks in campus-based and mixed-use environments in India,

All real estate production, project management, leasing, and operations will be managed by the Embassy Company.

The platform will have a US$ 500 million investment potential, with an 80:20 investment ratio between Ivanhoe Cambridge and Embassy, with an initial focus on the markets of Bengaluru and Chennai.

Both companies strive to cater to the needs of the millennial workforce by delivering flexible work environments and developing sustainable communities in key Indian cities. The model is designed to meet the increasing demand for Global Capability Centres and R&D Campuses.

The platform's initial investment will be the first phase of the 60-acre Embassy East Business Park in Bengaluru's Whitefield Main Road.

The first phase will be constructed on a 9-acre plot of land with 1.3 million square feet of gross leasable area. Co-living and retail space are also available at the upcoming business park. By early 2024, the first phase of the project is expected to be ready to occupancy.

Mr. Karim Habra, Head of Europe & Asia-pacific at Ivanhoe Cambridge, said, “This new partnership with Embassy will allow us to strengthen our footprint in India, which is an integral component of our Asian diversification strategy.”

He said, “Several global companies have recognized India as a scalable global innovation centre catalysed by a large, world-class talent pool over the last couple of decades. We expect this pattern to continue, resulting in long-term demand for sustainable offices in mixed use campus environments.”

Mr. Chanakya Chakravarti, Managing Director, India, at Ivanhoe Cambridge, said, “We are excited to broaden our portfolio with Embassy, an accomplished developer with an established track record of execution through investment strategies.”

Ivanhoe Cambridge is a real estate development and investment company that focuses on high-quality properties, ventures, and businesses. It makes foreign investments with strategic partners and leading real estate funds partners.

The Embassy Group, founded in 1993, is one of India's largest real estate conglomerates, with a portfolio of > 62 million sq. ft of premium commercial, residential, and industrial property.

The company has collaborated with global investors such as Blackstone and Warburg Pincus.

The Embassy was a supporter of India's first REIT, Asia Pacific's largest REIT office.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.