Mahindra’s two global cities, Chennai and Jaipur, will be the seed sites to be acquired and developed by the joint venture platform in the initial phase, subject to required approvals. Both cities offer 100 acres of land with ready infrastructure and built potential of more than 2 million square feet, Mahindra Lifespaces said in its press release.
Livespace Developers Mahindra, the real estate and infrastructure development arm of the Mahindra Group and Actis, a leading global investor in sustainable infrastructure, have entered into a joint venture to develop industrial and logistics real estate facilities in across India.
The majority of the joint venture’s total investment is to be acquired by Actis.
In the first few years, the total investment is to be estimated at Rs 2,200 crore including debt, the statement said.
The Mahindra World City (MWC) developments in Chennai (Tamil Nadu) and Jaipur (Rajasthan) comprise large-format integrated cities that have been planned to be self-contained, with co-located industrial, residential and commercial infrastructure. Both encompass dedicated special economic zones, inland fare zones, residential and social spaces.
Additionally, other greenfield and brownfield sites in key markets across India are also to be acquired and developed concurrently under this joint venture.
“We are seeing strong and growing demand for Class A warehousing and manufacturing facilities from multinational and Indian clients,” said Arvind Subramanian, Managing Director and CEO of Mahindra Lifespaces.
He said that with their experience in building and operating thriving integrated cities and industrial parks and market-ready plug-and-play infrastructure in Mahindra World Cities in Chennai and Jaipur, they are well placed to respond to this request.
“We look forward to combining both partners’ expertise in infrastructure development and asset management and contributing to the vision of ‘Atmanirbhar Bharat’,” Subramanian said.
Industrial and warehousing has become a high-growth real estate asset class, driven by rising consumer demand and accelerating investment in manufacturing. This will further stimulate investment through the recently launched logistics policy.
Ashish Singh, Partner and Head of India and Southeast Asia Real Estate, Actis, said Actis sees huge potential for growth in the sector as India grows to become the third largest economy. consumption in the world at the turn of this decade, he said.
“Demand for industrial property is on the rise as India benefits from a renewed domestic capital investment cycle, realignment of global supply chains across many sectors and incentive programs linked to production (PLI) are catalyzing more and more investment in local manufacturing,” Singh said.
He also said there is a need for more reliable real estate solution providers and institutional landlords in this industry. Actis is delighted to partner with Mahindra Lifespaces to invest in the development of modern and sustainable warehousing and industrial spaces in India, which will improve logistics efficiency and support industrial growth, two key areas for the government.