Mahindra Lifespace Developers plan $1.1 bn mega township

CHENNAI: After creating a record of sorts in setting up Mahindra World City, the first SEZ at Chengalpet near Chennai, Mahindra group has embarked on yet another dream project. This time, the $6 billion-group plans to build a mega integrated township costing over $1.1 billion within the SEZ in the next five years.
As part of the gameplan, the group’s listed real estate and infrastructure subsidiary, Mahindra Lifespace Developers (MLDL) on Monday announced its partnership with Ayala Corporation, Philippines’ leading real estate developer through its subsidiary, Mahindra residential developers (MRDL).
Mahindra group will hold 51% stake in MRDL and the balance 49% held by Ayala Corporation through its real estate fund, Arch Capital Asian partners, managed by Arch Capital management company. The JV will undertake the development of a gated residential community replete with infrastructure, retail and recreational facilities within Mahindra Lifespaces’ Mahindra World City, which will be spread over 1,600 acres.
Mr Arun Nanda, Mahindra & Mahindra executive director and Vice-Chairman, MLDL, said this is the first time Ayala is entering India. It is one of the largest real estate developers in the Philippines, having a track record of 80 years plus experience. As a milestone project, Ayala has developed 2,000 acres at Makati, making it the new business capital of that country, he added.
He said the SEZ has already come up on 1400 acres and it has acquired additonal 200 acres. Of this, the industrial space will spread over 1100 acres and the township will come up on 500 acres. During 2007, employment in the SEZ crossed 8000 and this year it is expected to touch 15,000. By 2010, it is expected to employ one lakh people directly and indirectly, whereas by 2014, direct employment alone is to touch one lakh and indirect employment 1.5 lakh.
Of the 500 acres meant for commercial and residential space, the first phase will cover 250 acres. Of this, it has already utilised about 25 acres to develop the first residential project, styled Sylvan County, which has 250 units comprising apartments, bungalows and semi-detached dwellings, Nanda said.

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