Mahindra Lifespace Developers, part of $15.9 billion Mahindra Group, has bought the stake of private equity Arch Capital in its joint venture residential project at Chennai. The buy out of the stake was estimated to be around Rs 70 crore. Mahindra Lifespace formed a JV in 2009 to set up a Rs 400 crore residential project on the outskirts of Chennai.
The private equity real estate fund, ARCH Capital Asian Partners LP managed by ARCH Capital Management Company had a 49 per cent stake in the JV. The fund is an affiliate of Ayala Land, the Philippines’ largest trusted real estate brand, and Ayala Corporation. Following the buyout the SPV will become a 100 per cent subsidiary of Mahindra Lifespace now.
Anita Arjundas, MD &CEO of Mahindra Lifespace Developers (MLDL) confirmed the development and said the company has been discussing a buyout with them and concluded it recently. MLDL is the real estate and infrastructure development arm of the Mahindra Group.
She added, it was a normal commercial transaction. Numbers cannot be shared as it is confidential. On the project development, she said it is progressing well with 70 per cent of the villas and 40 per cent of apartments were allotted. Phase I has already been handed over and other phases are under construction.
The JV was to build a gated residential community in 55 acres within Mahindra Lifespaces’ Special Economic Zone (SEZ) at Mahindra World City. The residential development will offer an exclusive community of around 750 residential units with sprawling green spaces and large community interaction zones.