ARCH Capital Asian Partners L.P., the private equity real estate fund of Ayala group, has formed a JV with the Mahindra Group of India for the development of a residential community in Chennai.
Ayala Corp. president and chief operating officer Mr. Fernando Zobel de Ayala said in a statement that the venture would be the group’s first major investment in Indian real estate market.
Mr. Zobel said, “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 development but even in high-growth areas such as business process outsourcing. We continue to see good growth prospects in India and we are delighted to have the opportunity to participate in this momentum through our partnership with Mahindra Group”.
The company did not disclose investment figures.
Under the agreement, the Mahindra Group will own 51% of the joint venture entity with the balance controlled by ARCH Capital-controlled investment vehicle.  The plan involves the development of a residential community within the 1,500-acre Mahindra World City in Chennai, India.
The project will be constructed in around 55 acres of land located within the MWC Special Economic Zone designated for low-density residential community development.
The exclusive community of approximately 750 residential units will be master-planned and designed by acclaimed international planners and architects with amenities, development standards and an urban environment.