Pension fund's $441 million deal for Prestige Hospitality Ventures marks its first direct hospitality investment in India
CPP Investments has committed $441m to Prestige Hospitality Ventures Limited, acquiring an approximately 27 percent stake in the Indian hospitality platform.
The majority of the capital will support the platform's continued expansion.
PHVL is the hospitality arm of Prestige Estates Projects Limited, described in the announcement as one of India's leading real estate developers.
The platform owns luxury and premium hotels in gateway cities across India, with a development pipeline spanning Bengaluru, Chennai, Delhi, Goa, Hyderabad, and Mumbai.
The announcement identifies the transaction as CPP Investments' first direct investment in India's hospitality sector, following hospitality investments in Japan and Korea.
"Their long-term investment approach complements our development capabilities and market understanding," said Irfan Razack, chairman and managing director of Prestige Group, in the announcement.
He said Prestige and CPP Investments plan to build a hospitality platform in India.
Hari Krishna, head of real estate India and Mumbai office head at CPP Investments, said in the announcement that the firm sees opportunities in the sector because of "rising travel."
The investment seeks "risk-adjusted returns for CPP contributors and beneficiaries," he said.
