Actis, Mahindra Lifespace JV acquires industrial land in Mahindra World City, Chennai -

Ample Parks, a joint venture between global infrastructure and energy investor Actis and real estate firm Mahindra Lifespace Developers Ltd, has secured a prime 70-acre industrial land parcel at Mahindra World City, Chennai. This acquisition, the first under the joint venture, will be developed into an integrated industrial and logistics park.

In October 2022, Actis announced that it has partnered Mahindra Lifespace Developers, the real estate arm of Mahindra Group, to establish an integrated business that will develop industrial and logistics real estate facilities across the country. 

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The joint venture (JV) platform, Ample Parks, has been formally launched. Actis holds a majority stake in the JV, with Mahindra Lifespace Developers owning a significant minority stake. Akash Rastogi has been appointed chief executive officer for the new platform. 

In its inaugural project at Mahindra World City, Chennai, Ample Parks plans to develop approximately 2 million sq. ft of Grade A industrial and warehousing space. Actis will own a 67% stake, and Mahindra Lifespace Developers will hold 33%, with an investment of around ₹800 crore through a mix of debt and equity.

“We expect substantial growth in Grade A and Grade B warehousing logistics facilities prompted by consumption growth,” said Raghvendra Chandak, director of real estate at Actis, said in an inteview. “Ample Parks aims to acquire around 700-750 acres to develop large-format industrial and warehousing spaces across 15-17 projects over the next 5-7 years in tier 1 and 2 cities which are growth centres such as Chennai, Bengaluru, Mumbai, National Capital Region and Pune. We will also look at Lucknow, Hyderabad and Ahmedabad."

Chandak said this development will require around $600 million of investment, combining debt and equity. 

Akash Rastogi highlighted the positive impact of the decentralisation of manufacturing from China and government initiatives like “Make In India” and the “Production Linked Incentive (PLI) scheme” on India’s manufacturing and logistics sectors.

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“Our first project of Grade A industrial development 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 minimizing their environmental impact," Rastogi said. 

Actis and Mahindra Lifespace Developers have previously collaborated on residential projects. Actis has committed $1.7 billion to real estate in Asia since its inception.

“…(W)e are poised to create a transformative platform to meet the evolving needs of businesses. This initiative fits well into the state-of-the-art facilities within an already established, self-contained ecosystem,” said Amit Sinha, managing director and chief executive, Mahindra Lifespace Developers.

Warehouse leasing transactions across India’s top eight cities recorded 22.9 million sq ft between January and June this year, slightly down from 23.8 million sq ft in the same period last year, according to Knight Frank India. Manufacturing sector companies accounted for 36% of the total transacted volume in first half of calendar year 2024.

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“India’s industrial and logistics sector represents a tremendous investment opportunity, benefiting from a boom in consumer demand domestically and a realignment of global supply chains in favour of India, with many corporations implementing a China Plus One strategy," said Brian Chinappi, partner and head of real estate at Actis.