New Delhi, Aug. 12 -- Canada Pension Plan Investment Board (CPPIB) is set to invest in Prestige Group's hospitality arm, Prestige Hospitality Ventures Ltd (PHVL), valuing the latter at around $1.1 billion.

CPPIB, one of the biggest foreign institutional investors in the Indian real estate and infrastructure sector, will invest up to Rs 3,000 crore (around $314.4 million) to pick up a stake of up to 28% in PHVL, as per a stock market disclosure.

The transaction is, however, subject to the completion of due diligence, negotiation and execution of definitive agreements, as well as receipt of all necessary regulatory and other approvals.

The investment is proposed to be made in multiple tranches under a binding framework agreement approved by a sub-committee of the company's board on August 10, 2026.

PHVL is currently a wholly owned subsidiary of Prestige Estates Projects, with its shares held by the company and its nominees. It owns and develops luxury, upper upscale and upper midscale hospitality assets in India for both business and leisure travellers, and has seven operating properties (1,445 keys), three ongoing projects (951 keys), and nine upcoming developments (1,558 keys) spanning major cities such as Bengaluru, Mumbai, Goa and Delhi. Its operational assets include Sheraton Grand, JW Marriot, Conrad, Angsana Oasis Spa & Resort, Mulberry Shades, Moxy and Marriot Executive Apartments in Bengaluru. Its ongoing projects include Marriot Marquis and St. Regis in Delhi, and Forum North in Bengaluru. PHVL filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in April 2025 to raise Rs.2,700 crore through an IPO. SEBI granted its approval for the public issue in August 2025.

The proposed capital infusion from CPP Investments will comprise a combination of primary and secondary investments, with the exact structure to be mutually agreed between the parties under the definitive transaction documents.

The transaction will mark a significant capital commitment by CPP Investments to Prestige's hospitality platform and is expected to provide the business with additional capital as it expands its hospitality portfolio.

The investment would value the 28 per cent stake at an implied equity valuation of approximately Rs 10,714 crore (around $1.1 billion) for PHVL. The final valuation and ownership structure, however, will depend on the terms agreed in the definitive documents and the mix of primary and secondary investments.

CPP Investments has been an active investor in India's real estate sector, including hospitality and commercial real estate. Recently, it struck a deal to invest up to Rs 7,000 crore ($740.5 million at current exchange rates) into Indian data centre operator CtrlS Datacenters Ltd.

For Prestige Group, the proposed transaction is another step towards attracting institutional capital into its hospitality business while retaining a majority stake in PHVL. Mumbai-listed Prestige Group in 2024 had secured Rs 2,001 crore from Abu Dhabi Investment Authority (ADIA) and Kotak AIF for housing projects across four major cities as part of Prestige's expansion strategy.

Published by HT Digital Content Services with permission from VC Circle.