Mahindra Lifespace Developers Ltd on April 21, 2008 has announced the inking of a joint venture agreement for residential development between its subsidiary Company, Mahindra Residential Developers Ltd (MRDL) and the private equity real estate fund, ARCH Capital Asian Partners, L.P., managed by ARCH Capital Management Company Ltd, an affiliate of Ayala Land, the Philippines? largest and most trusted real estate brand, and Ayala Corporation.

The joint venture will undertake the development of a gated residential community together with support, retail and recreational facilities in approximately 55 acres within Mahindra Lifespaces? pioneering Special Economic Zone (SEZ) at MAHINDRA WORLD CITY, NEW CHENNAI.

Mahindra World City is India’s first integrated business city developed by the Mahindra Group and Tamil Nadu Industrial Development Corporation (TIDCO). Spread over 1500 acres in the outskirts of Chennai near Chengiepet, Mahindra World City has three sector-specific SEZs for Information Technology, Auto Ancillaries, and Apparel & Fashion Accessories. The leading Indian and multi-national Companies at Mahindra World City include BMW, B Braun, Cap Gemini, Infosys, Renault Nissan, Mindtree, Timken, TVS Group, Tech Mahindra and Wipro. Mahindra World City is expected to have a working population of 100,000 people by 2015 with current employment at close to 10,000 persons.

Mahindra World City is being developed as an Integrated township with the theme of Live - Learn - Work - Play. Its master plan for the residential and social infrastructure zone, developed by world renowned planners and architects, M/S HOK, has already won 2 international awards for the quality of its master plan.

The Mahindra World School, a strong and high-quality support system for the residents of Mahindra World City is expected to commence operations at Mahindra World City from the Academic Year starting June 2008. Mahindra Lifespaces’ first residential project, Sylvan County, at Mahindra World City has been hugely successful and this will be followed shortly by the development to be taken up by the new joint venture with the Ayaya Group.

Mahindra Residential Development Ltd, the joint venture entity, will be 51% owned by the Mahindra group and 49% by an ARCH Capital controlled investment vehicle. The residential development will offer an exclusive community of around 750 residential units with sprawling green spaces and large community Interaction zones. The development will be master-planned and designed by acclaimed international planners and architects with amenities, development standards and a green environment that would set new benchmarks in the Indian context.

Arun Nanda, Executive Director Mahindra & Mahindra Ltd. (Vice Chairman, Mahindra Lifespace Developers Ltd.), announcing the venture said, “The Mahindra Group has demonstrated the vision and the ability to build a world class SEZ in Mahindra World City. This will now be ably supported with flying infrastructure built to international standards. Our partnership with Ayala, Philippines leading real estate developer, heralds the beginning of a relationship that will combine the marketing and property development skills of Mahindra Lifespaces with the project management and execution expertise of Ayala.”