An investment arm of UK's Standard Chartered Bank has made an entry into Indian real estate by signing a joint venture with Mahindra Lifespace Developers, the realty arm of the Mahindra Group.
Mahindra and SCM Real Estate, the investment arm of Standard Chartered, would together invest Rs 1,000 crore (Rs 10 billion) in multiple projects and hold equal stakes in the JV to be called Watsonia Developers.
The first two projects under this JV would be premium residential developments in Gurgaon and Bengaluru.
With this JV, Mahindra Lifespace joins the likes of Godrej Properties, Peninsula Land and others who have signed JVs with foreign funds to invest in Indian properties. Godrej Properites had created a Rs 770 crore (Rs 7.7 billion) development fund with Dutch firm APG.
Anita Arjundas, managing director and chief executive officer, Mahindra Lifespace Developers said, “Our association with Standard Chartered Bank marks an important milestone for us with a partner who is equally committed and optimistic about the opportunities for sustainable residential developments in India.
"This strategic relationship would leverage the expertise of both groups and become an important contributor towards our growth in the coming years.”
All the projects developed under the aegis of the JV would be marketed under the Mahindra Lifespaces brand and the JV would build on the experience which Mahindra Lifespaces has developed over the last several years in the residential business
Mahindra Lifespaces’ stock ended at Rs 445.85, which is 0.81 per cent lower than its previous close.