Actis-Mahindra Lifespaces JV to invest Rs 800 cr in Chennai to develop industrial and logistics park

The joint venture is aiming to develop 1.5 million sq metres in industrial and logistics space.

Ample Parks, a joint venture between Mahindra Lifespaces Developers Ltd and private equity firm Actis, has acquired a 70-acre land parcel in Chennai, the first by the JV.

The land at the Mahindra World City in Chennai will be developed into an integrated industrial and logistics park, the real estate developer said on August 5.

"This is a great first step for Ample Parks to develop this project at a strategic location in the thriving industrial ecosystem in Chennai,” Raghvendra Chandak, director of real estate at Actis said.

Chandak added that the JV will be investing as much as Rs 800 crore in the Chennai land parcel to develop up to 2 million square feet of industial and logistics warehousimng facility for industrial players based in Mahindra World City.

Actis holds the majority stake in the Ample Parks with Mahindra Lifespaces holding a significant minoroty stake. Actis has committed around $1.7 billion for real estate assets in Asia ever since its inception.

Akash Rastogi, Chief Executive Officer and Director at Ample Parks, said “We believe that the ongoing decentralisation of manufacturing capacity from China, coupled with government initiatives such as “Make In India” and “Production Linked Incentive (PLI) scheme” will immensely enhance manufacturing and logistics prospects in India. Our first project will comprise of approximately 2 million square feet of Grade A industrial development that can offer plug and play facilities as well as bespoke built to suit solutions to a diverse set of customers and allow for scalability. Sustainability will be integral to this development and will enable businesses to operate efficiently while minimising their environmental impact."

Announced in 2022, the JV aims to develop more than 16 million square feet in both greenfield and brownfield developments, the two companies said in a statement.

For this the JV will invest as much as $600 million, including debt and equity over the next 5-7 years, said Actis' Chandak, adding that this development will require acquisition of approximatley 750 acres of land.

Ample Parks' Rastogi added that the platform will expand its presence to both tier 1 and tier 2 cities across India.

"We will be looking at more parcels within Chennai and other tier 1 cities such as Mumbai, Delhi NCR, Ahemdabad, Pune and Kolkata. We are also very keen on expanding to tier 2 cities such as Lucknow, Jaipur, Guwahati and Nagpur, which are seeing strong growth and there is a big need for both industrial and logisitcs supply chain assets in these cities," he said.