Mahindra Lifespace, Actis Form JV For Commercial Real Estate In India

Mahindra Lifespace Developers Ltd. has inked a pact with global investor Actis to form a joint venture for developing industrial and logistics real estate facilities in India.

The total investment into the business over the initial years -- including debt -- will be about Rs 2,200 crore, the real estate and infrastructure development arm of Mahindra Group said in an exchange filing.

Up to 100 acres of land with ready infrastructure in the two Mahindra World Cities, offering a built-up potential of over two million square feet, has been earmarked as seed sites to be acquired and developed by the joint venture platform over time, subject to requisite approvals, the filing stated.

The joint venture will simultaneously acquire and develop other greenfield and brownfield sites in key markets across India.

Actis, which invests in sustainable infrastructure, will hold a majority stake in the joint entity, while the Mahindra Group company will have a minority stake.

“We are witnessing strong and accelerating demand for Grade A warehousing and manufacturing facilities from both multinational and Indian clients," Arvind Subramanian, managing director and chief executive officer at Mahindra Lifespaces, was quoted as saying in the filing.

"With our experience in building and operating thriving integrated cities and industrial parks and our ready-to-market plug-and-play infrastructure in Mahindra World Cities in Chennai and Jaipur, we are well-positioned to cater to this demand."

Shares of Mahindra Lifespace Developers rose nearly 2% intraday after the deal announcement. All the seven analysts tracking the company maintain a 'buy', according to Bloomberg data. The average of the 12-month target price implies an upside of 2.7%.