Mahindra Lifespaces establishes JV with Actis to develop industrial, logistics real estateMAHLIFE - 535 Change: 6.70 (1.27 %)
Mahindra Lifespace Developers has entered into an agreement with Actis (a leading global investor in sustainable infrastructure) to establish a joint venture (JV) platform for developing industrial and logistics real estate facilities across India. Up to 100 acres of land with ready infrastructure in the two Mahindra World Cities, offering a built-up potential of 2+ mn sq ft, has been earmarked as seed sites to be acquired and developed by the JV platform over time. The JV will also simultaneously acquire and develop other greenfield and brownfield sites in key markets across India. The total investment in the business over the initial years, including debt, is estimated to be Rs 2,200 crore. Actis will own a majority stake while Mahindra Lifespaces will have a significant minority (26-40%).
The demand for industrial real estate is on the rise as the country benefits from a renewal of domestic capital investment cycle, realignment of global supply chains in many sectors and as the government’s PLI schemes catalyses more and more investment in manufacturing locally. With their experience in building integrated cities and industrial parks, and ready-to-market plug-and-play infrastructure in Mahindra World Cities in Chennai and Jaipur, the company is well-positioned to cater to this demand. This deal will enable it to play the segment at an accelerated pace with lower capital outlay initially (as the company will provide the land, while partner will bring in large chunk of capital).