Canadian pension fund CPPIB will invest Rs 3,000 crore in Prestige Hospitality Ventures (PHVL), the hospitality subsidiary of Prestige Estate Projects. Post the capital infusion, CPP Investment Board (CPPIB) will own 28% in PHVL, Prestige said in an exchange filing.

PHVL currently operates seven properties, all in Bengaluru, and has five properties under construction — St Regis – Aerocity, Delhi; Marriott Marquis – Aerocity, Delhi; JW Marriott – Sakleshpur, Karnataka; Marriott Edition – Mumbai; and W Hotel – Bengaluru.

Though the Prestige Group planned a Rs 2,700-crore initial public offering (IPO) for its hotel unit in April 2025 and secured regulatory approvals, it later put the plan on hold due to weakness in markets and started looking at a stake sale in the hotel arm. Sources said the company would relook at IPO after four to five years.

They need to give exit opportunity to investors after some time and look at public markets,” said a source. In the exchange filing late Monday evening, the company said a sub-committee of its board of directors has approved the execution of a binding framework agreement to be entered into by the company, CPPIB and PHVL.

As per the agreement, the investment will be made through multiple tranches and will comprise primary and secondary investments.

CPPIB has a portfolio worth over $22 billion in the country, with estate and real assets forming a major chunk of it. It has joint ventures with RMZ as well as Tata Realty and Infrastructure for commercial properties, and Indospace for warehousing assets.

Recently, CPPIB executed a deal worth around Rs 8,000 crore with CtrlS Datacenters. This includes an 8.2% direct stake in the company alongside a dedicated 48:52 joint venture to develop sustainable, hyperscale data centre campuses across the country.

In 2020, the Prestige Group entered into a Rs 9,160-crore deal with the US-based Blackstone to sell office properties, malls and hotel assets in two phases.