Canada Pension Plan Investment Board will invest 15 billion rupees (US$200 million) to develop offices in southern India with local firm RMZ Corp.

The joint venture will develop 10.4 million square feet in Chennai and Hyderabad, the companies said in a statement published Monday. They estimate the properties will be worth more than US$1.5 billion once completed.

Large foreign investors have been buying into the Indian office market, betting that demand will rebound from the pandemic. For Indian developers, the investment offers an opportunity to cut debt in an environment where capital-starved local lenders are unwilling to offer easy credit.

Brookfield Asset Management last year agreed to buy RMZ’s commercial properties for US$2 billion, the biggest real estate deal in India. RMZ had said it would be debt-free after the transaction.