Information on the Target

Actis is a leading investor in sustainable infrastructure, and its recent initiative involves the establishment of Ample Parks, a joint venture with Mahindra Lifespaces. This partnership aims to develop and operate high-quality industrial and logistics real estate in India, capitalizing on the increasing demand for Grade A properties. Ample Parks is strategically positioned to meet the needs of a diversifying economy by focusing on the burgeoning industrial sector and the logistics market, both of which are integral to India's economic growth.

With India's rapidly expanding consumer market—projected to become the third-largest in the world by 2027—there is a significant opportunity for Ample Parks to provide quality real estate solutions. The company is committed to acquiring and developing approximately 1.5 million square meters of industrial and logistics space across India in the coming years.

Industry Overview in India

India's industrial and logistics sector is witnessing transformative growth amidst a backdrop of increased government support and evolving market demands. Historically lagging behind its Asian counterparts in manufacturing, India is now attracting global investment as companies adopt a 'China-plus-one' strategy to diversify their supply chains. Notably, major corporations like Apple are ramping up production in India, indicating a significant shift towards the country as a manufacturing hub.

The Indian government has implemented several policies aimed at boosting manufacturing, such as the 'Make in India' initiative and production-linked incentive schemes totaling approximately $27 billion across 13 sectors. Moreover, infrastructural developments like improved power generation and transportation networks are enhancing the logistics framework, further highlighting the sector's growth potential.

Logistics is critical for supporting e-commerce, which is expected to reach $173 billion by 2028, growing at an approximate CAGR of 24%. As e-commerce companies require more warehouse space, the demand for logistics facilities is expected to surge, emphasizing the need for quality real estate solutions suited to this growing sector.

Despite the promising growth in demand, India's existing industrial real estate supply is often subpar, with much of it at risk of obsolescence in the coming decade. This gap presents a unique opportunity for Ample Parks to capitalize on the need for high-quality Grade A facilities, aimed at attracting modern tenants looking for operational efficiency and sustainability.

The Rationale Behind the Deal

The partnership between Actis and Mahindra Lifespaces through Ample Parks leverages a synergy of resources and expertise aimed at addressing the growing demand for high-standard industrial and logistics properties. This joint venture is not just about filling the existing gap in quality real estate supply; it also aligns with the broader trends of increasing consumption, government incentives, and a shift in global supply chains.

The focus on developing property that meets the needs of the 'new economy'—which includes sectors like data centers and life sciences—positions Ample Parks to capitalize on future growth trends. The collaboration aims to create a robust platform that can adapt to changing market conditions while delivering sustainable and efficient properties to a diverse clientele.

Information About the Investor

Actis is a prominent global investor specializing in sustainable infrastructure, with a strong track record of developing and managing investments across emerging markets. Their extensive experience in identifying lucrative real estate opportunities positions them favorably to navigate the complexities of real estate investment in high-growth regions, particularly in India.

Mahindra Lifespaces, as the real estate and infrastructure arm of the Mahindra Group, one of India's largest conglomerates, brings significant experience and resources to this joint venture. This collaboration enhances the operational capabilities of Ample Parks and provides invaluable insights into the local market dynamics, essential for making informed investment decisions.

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The establishment of Ample Parks represents a significant opportunity in India's industrial and logistics real estate sector, which is poised for considerable growth. Given the rising demand for Grade A properties, the venture can not only meet current market needs but also capitalize on future trends in consumption and e-commerce expansion. Actis' expertise in sustainable investments combined with Mahindra Lifespaces' local market knowledge creates a competitive edge in a sector where quality and operational efficiency are paramount.

Furthermore, the initiatives taken by the Indian government to bolster manufacturing and logistics provide a favorable backdrop for this investment. With strategic policies aimed at fostering a robust industrial base, the potential for returns in this sector is substantial. Actis and Mahindra Lifespaces are well-positioned to fill the supply gap with high-quality assets that cater to both local and global corporations.

In summary, the investment in Ample Parks can be viewed as a strategic move into an under-served market. With the ongoing transformation of India's economy and the realignment of global supply chains, the venture could yield significant long-term benefits, enhancing both the operational capabilities and the competitive positioning of Actis and Mahindra Lifespaces.

Ultimately, assuming that the management team navigates the market dynamics effectively, this partnership appears to be a promising investment, with the potential for delivering attractive returns as the demand for quality industrial and logistics real estate continues to grow.

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