Actis Launches Logistics JV With India’s Mahindra, Buys Chennai Site

London-based fund manager Actis on Monday announced the formal launch of its logistics joint venture with a unit of Indian conglomerate Mahindra Group, as the platform aims to acquire and develop 1.5 million square metres (16.1 million square feet) of greenfield and brownfield sites in Asia’s most populous country.

The new business, called Ample Parks, has completed its maiden acquisition of 70 acres (28.3 hectares) of land within Chennai’s Mahindra World City for development into an industrial park, Actis said in a release. Akash Rastogi, formerly of industrial specialist Logos Property, leads the Ample Parks team as chief executive.

Actis and JV partner Mahindra Lifespaces, the real estate and infrastructure development arm of Mahindra Group, will capitalise on the growth of new economy real estate for the benefit of investors, said Brian Chinappi, partner and head of real estate at Actis.

“India’s industrial and logistics sector represents a tremendous investment opportunity, with the country’s market strongly benefiting from a boom in consumer demand domestically and a realignment of supply chains globally in favour of India, with many corporations implementing a China Plus One strategy,” Chinappi said.

Ample Growth Potential

Actis holds a majority stake in Ample Parks, with Mahindra Lifespaces owning a “significant” minority stake, according to the partners. No financial details were disclosed for the JV, which seeks to benefit from the Actis global network and Mahindra Lifespaces’ access to prime land and relationships with key stakeholders in the Indian market.

Mahindra World City, billed as India’s first integrated business city, spans 1,550 acres along India’s National Highway 45 and is home to more than 60 companies, according to Mahindra Group, which operates the township in partnership with the Tamil Nadu state government.

Existing developments at MWC include five industrial projects of Singapore-listed CapitaLand India Trust, which struck a deal with local builder Casa Grande to acquire its latest three facilities for INR 2.68 billion ($32 million) earlier this year.

Actis had sketched the broad strokes of the Mahindra partnership in an October 2022 announcement before establishing the Ample Parks brand. At the time, the JV hoped to catch the tailwind from the Indian government’s newly launched National Logistics Policy, which sought to address issues of high cost and inefficiency in the sector.

Rastogi joined Ample Parks as CEO in April 2023 after serving as chief acquisition officer and head of investments for Logos India from 2018 to 2019, according to his LinkedIn profile. Before that he led India investments for Country Garden, including the Chinese developer’s first residential acquisition in the country, a Mumbai project under the Risland brand.

Rastogi said the first Ample Parks project would comprise 2 million square feet of Grade A industrial space offering plug-and-play facilities and built-to-suit options.

“Sustainability will be integral to this development and will enable businesses to operate efficiently while minimising their environmental impact,” he said. “We are excited to embark on this journey and are committed to delivering excellence at every turn.”

Dry Powder Cache

Actis is in the process of being acquired by General Atlantic, which will integrate the business as the US private equity firm’s sustainable infrastructure arm.

In 2022, Actis reached a $700 million final closing for its 2019-vintage Actis Asia Real Estate Fund 2, which invests in new economy assets across emerging markets in the region. In March of this year, Bloomberg reported that Actis had reached the $800 million first closing of a new infrastructure fund focused on emerging markets.

The London-based firm plans to invest as much as $2.5 billion in India over the next four years, targeting projects across the country’s energy transition, digital infrastructure and logistics sectors, according to media reports. The fund manager is also looking to invest $700 million to build and operate life science assets in the country, according to separate press accounts.

Actis has invested and committed $1.7 billion in Asian real estate markets, according to the firm.