Mahindra Lifespaces (ML), a 51.33% subsidiary of M&M is partnering with Actis to own and operate industrial and warehousing real estate facilities in India.
- Partners will jointly invest in Asset Owning SPVs (SPVs) as well as Operating Company which will provide service to those Asset Owning SPVs.
- In both kinds of entities, ML plans to restrict its shareholding in between 26% to 40% and balance would be owned by Actis.
- Total funding (including debt) envisaged in the business is currently estimated at Rs 2,200 crore, to be spent during the initial years (duration is not specified).
- To begin with, upto 100 acres of land across Mahindra World Cities has been earmarked as seed assets to be acquired by the Asset Owning SPVs. In addition, the partners plan to expand the business by acquiring and developing greenfield and brownfield projects across India.
Organised warehousing is at an early stage of evolution in India with strong growth prospects. Industrial real estate anyways should see continued demand due to the overall economic prospects.
The subject partnership therefore should ideally do well.