The source clarified that the ADIA and Shapoorji Pallonji had not set up a joint venture (JV) but would invest in a couple of deals together. One of the investments could be in a 800,000 sq ft business park, owned by Adani Realty, in the Bandra-Kurla Complex area of Mumbai, the source added.
Spokespersons for Shapoorji Pallonji and the ADIA declined to comment on the matter.
Shapoorji Pallonji and the CPPIB set up a JV in 2013 to invest in commercial property. The CPPIB owns 80 per cent in the venture and has committed $200 million. The partners invested $220 million in a IT park in Chennai in 2015.
Shapoorji Pallonji is also setting up a venture with German insurer Allianz to invest in commercial property. “Talks are progressing smoothly,” the source said. “Shapoorji Pallonji receives several such requests to co-invest, but it wants to work with partners with strong execution capabilities and financial strength. It is seeking partners among long-term investors with deep pockets,” the source said.
The ADIA recently tied up with Mumbai-based Lake Shore India to pump capital into retail properties. It has committed investments of $250 million in Hines India Real Estate, the Indian arm of US-based Hines.
The sovereign fund has also committed $200 million to the Kotak Realty Fund. HDFC Capital Advisors has raised $400 million from the ADIA to invest in Indian properties.
Another sovereign fund, the Qatar Investment Authority, has tied up with the Bengaluru-based RMZ for investments in commercial property in India.