ARCH Capital Asian Partners L.P., the private equity real estate fund of the Ayala Group, has entered into a joint venture with India’s Mahindra Group to develop a residential community in Chennai. This marks the Ayala Group’s first significant investment in the Indian real estate market. Fernando Zobel de Ayala, President and Chief Operating Officer of Ayala Corp., stated, "The Indian market is very attractive, and we see many opportunities for joint development and partnerships in the future, not only in residential real estate but also in high-growth areas like business process outsourcing. We are excited to partner with the Mahindra Group and participate in India’s growth momentum.
While the exact investment figures were not disclosed, the agreement stipulates that the Mahindra Group will hold a 51% stake in the joint venture, with the remaining 49% controlled by an ARCH Capital-managed investment vehicle. The project will be developed within the 1,500-acre Mahindra World City in Chennai, specifically on a 55-acre parcel designated for low-density residential development within the Special Economic Zone.
The planned community will feature approximately 750 residential units, master-planned and designed by internationally renowned architects and planners. It will offer high-quality amenities, development standards, and an urban environment tailored to meet the needs of modern residents. This collaboration underscores the growing interest of global investors in India’s real estate sector, particularly in well-planned, integrated communities.