CPP Investments to Acquire Stake in Prestige Hospitality Ventures
The Canada Pension Plan Investment Board (CPP Investments) is set to make a significant move in India’s hospitality market by investing INR30 billion (about €321 million) for a 27% stake in Prestige Hospitality Ventures Limited (PHVL). This marks CPP Investments’ first direct venture into the Indian hospitality sector.
The funds from this investment will primarily aid the expansion of PHVL, a hospitality platform backed by Indian real estate developer Prestige Estates Projects. The focus will be on increasing the portfolio of luxury and premium hotels in major cities such as Bengaluru, Chennai, Delhi, Goa, Hyderabad, and Mumbai.
Irfan Razack, the chairman and managing director of Prestige Group, expressed enthusiasm about the partnership, stating, “Hospitality is vital to our long-term growth, and we see great potential in building a high-quality portfolio across India. We are excited to welcome CPP Investments as a long-term partner in our hospitality endeavors.”
He further added that CPP Investments’ long-term focus aligns well with the development expertise and market knowledge of Prestige. Together, they aim to create a substantial hospitality platform that delivers unique experiences to guests while generating long-term value for all stakeholders involved.
Hari Krishna, who heads real estate in India and oversees the Mumbai office for CPP Investments, shared his thoughts on the investment, saying, “We see exciting opportunities in India’s hospitality sector, especially given the rise in travel and demand for quality accommodations. Prestige has established a strong asset portfolio and an impressive pipeline thanks to its solid real estate foundation.”
Krishna concluded by noting that this investment provides a chance to engage in the sector’s long-term growth while striving for favorable risk-adjusted returns for CPP contributors and beneficiaries.
