Mahindra Lifespace, the realty development arm of the Mahindra group has opted to go solo and bought out Arch Capital’s stake in its JV floated for the Chennai project, BS stated.

While the buyout is speculated to be for about R70 Cr, the deal marks the continuing trend of the group as a whole to be engulfing their various segment partners.

Mahindra Lifespace had formed the JV in 2009 for a premium realty project in Chennai with ARCH Capital, managed by ARCH Capital Management Company Ltd., an affiliate of Ayala Land, the Phillipines’ largest real estate brand and Ayala Corporation.

Arch Cap had 49% stake in the partnership. It was formed to build a gated residential community together with support, retail and recreational facilities in around 55 acres within Mahindra Lifespaces’ SEZ and Mahindra World City, New Chennai.

MD & CEO Anita Arjundas of Mahindra Lifespace mentioned that 70% of the villas and 40% of apartments were allotted and that the Phase I has been handed over with other phases under construction.

Mahindra World City, spanning 1500 acres on the Chennai outskirts near Chenglepet, contains three sector-specific SEZz of IT, Auto Ancillaries and Apparel & Fashion accessories.

Names like BMW, Capgemini, Infosys, Renault Nissan and TVS Group among others are housed in the SEZs there.

Mahindra has been buying out partners in the past couple of years. It bought out Renault’s stake in the Logan car=making project in 2010 and recently acquired American truck-maker Navistar's stake in their commercial vehicle business.

Mahindra Lifespace, after buying the 12,000 sq.mt plot from Nycomed Pharma for around R205 Cr in October last year, it entered into developer – owner collaboration agreement with the launch of ‘Ashvita’, a premium residential project in Hyderabad with Om Metals Developers Pvt. Ltd., an SPV of Om Metals Real Estate.

In a major deal expected to take place this year, Blackstone was said to be buying a SEZ in Gurgaon for about $440 Mn.

In the SEZ space, Ascendas was planning to acquire Shriram Properties's IT SEZ located in Chennai for R500Cr last year.

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