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Canada Pension Plan Investment Board (CPPIB), one of the world’s largest pension funds, is investing ₹15 billion ($210 million) in a joint venture in India with RMZ Corp, one of Asia’s largest private-owned real estate owners and developers.

According to the announcement, the JV will develop and hold commercial office spaces in Chennai and Hyderabad. The partnership is expected to see the development of 10.4 million square feet of high-quality commercial office sites.

The three sites that form the transaction are RMZ Nexity (Hyderabad), RMZ Spire (Hyderabad), and RMZ One Paramount (Chennai). These sites are Grade-A developments.

Of the 10.4 million square feet included in the transaction, 7.5 million square feet are already under active development, while construction of the remaining space due to commence in the coming months.

Both CPPIB and RMZ will have an equal stake in the JV firm and the value of the partnership assets, once developed, is estimated to be over $1.5 billion, said Manoj Menda, RMZ’s corporate chairman.

“The partnership with CPP Investments, a globally respected institutional investor, will only strengthen our vision of achieving our hyper-growth strategy target of RMZ 2.0,” Menda added.

Hari Krishna, managing director for real estate – India at CPP Investments, said the joint venture is well placed to meet the growing demand for high-quality sustainable office assets in Chennai and Hyderabad, as demand for collaborative and engaging workspace is expected to grow.

RMZ Corp is one of Asia’s largest privately-owned real estate owners, investors, and developers, and is among the zero debt real estate companies, globally.

The company has over 200 enterprise customers in six Indian cities, with 67 million square feet and $10 billion of assets that are owned and being developed. Last year, it completed the sale of its large commercial portfolio to Brookfield for $2 billion in India’s largest real estate deal.

In its 2021 India Real Estate Market Outlook report, CBRE said overall office leasing volume in India will see an uptick this year as the country remains a preferred global outsourcing destination on the back of low-cost knowledge talent.