CPP Investments makes India hospitality debut

MUMBAI: Canada Pension Plan Investment Board (CPP Investments) has invested Rs 3,000 crore or C$441 million in Prestige Estates Projects’ hospitality platform Prestige Hospitality Ventures Ltd (PHVL).Through the investment, CPP Investments will acquire around 27% stake in PHVL, with the majority of the capital supporting the platform's continued expansion.“We see compelling opportunities in India's hospitality sector, driven by rising travel and a demand for quality accommodation…This investment offers an opportunity to participate in the sector's long-term growth through a well-positioned platform, while seeking to generate attractive risk-adjusted returns for CPP contributors and beneficiaries,” said Hari Krishna, Head of Real Estate India & Mumbai Office Head at CPP Investments.This marks CPP Investments’ first direct investment in India’s hospitality sector and builds on its growing hospitality exposure across Asia Pacific, including recent investments in Japan and Korea.Also read | TVS Motor Company leases 5 lakh sq ft office in Bengaluru for 10 years“Hospitality is an important part of Prestige’s long-term growth strategy, and we see significant opportunity to build a scaled, high-quality portfolio across India. CPP Investments’ long-term investment approach complements our development capabilities and market understanding and together we look forward to creating a hospitality platform of scale,” said Irfan Razack, CMD, Prestige Group.PHVL owns a portfolio of luxury and premium hotels in key gateway cities across India and is well positioned for future growth through a substantial development pipeline spanning Bengaluru, Chennai, Delhi, Goa, Hyderabad, and Mumbai.CPP Investments is a professional investment management organisation that manages the Canada Pension Plan Fund on behalf of more than 22 million contributors and beneficiaries. It invests globally across public and private equities, real estate, infrastructure, fixed income and alternative strategies to build diversified portfolios.Also read | Affordable housing lenders need new branches, catchments as mature outlets see growth stagnation: ReportHeadquartered in Toronto, it operates independently of the Canada Pension Plan and at arm’s length from governments. As of June-end, the fund had assets of C$863.6 billion.As of June end, Prestige Group has delivered 319 projects spanning 216 million sq ft and currently has a pipeline of 137 projects across 229 million sq ft.