Canada Pensions Scout Indian Infrastructure

The Canada Pension Plan Investment Board (CPPIB) was very active in India in 2015. Now, other large Canadian pension funds are joining the party.

Caisse de depot et placement du Quebec (CDPQ) and the Public Sector Pension Investment Board (PSP Investments) are looking to invest in Indian infrastructure, according to a report.

From Deal Street Asia:

Two of Canada’s largest pension funds—Caisse de depot et placement du Quebec (CDPQ) and the Public Sector Pension Investment Board (PSP Investments)—are looking to invest in the Indian infrastructure sector and have started scouting for assets, according to two people familiar with the discussions.

[Neither] of them have any significant exposure to the Indian infrastructure sector so far, said the two people quoted above, requesting anonymity as negotiations are confidential.

As Indian infrastructure assets start to mature and companies look to divest cash-generating assets, these funds are starting to evaluate possible investments here, said the first person quoted above.

One Indian company, which the two Montreal, Quebec-based pension funds CDPQ and PSP Investments are in talks with is Tata Realty and Infrastructure Ltd (TRIL), confirmed both the people quoted above, adding that the discussions have not finalized anything due to a mismatch between valuations.

PSP Investments, CPDQ and TRIL did not respond to email queries sent on 12 October and subsequent follow-ups over phone and email.

TRIL, a subsidiary of Tata Sons, builds and operates real estate assets such as commercial office buildings, shopping malls, hotels and serviced apartments. It is also involved in infrastructure projects across highways and bridges and urban transport.

Caisse manages about $185 billion (USD) in assets; PSP manages a portfolio of about $86 billion.

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