max estates: Max Estates will expand its real estate business development portfolio
The company announced that the SPV of Max Estates has been confirmed, by
as the successful bidder for two plots of land auctioned by them for a total consideration of Rs 220 crore.
ET had reported the transaction earlier this week.
These two plots combined are spread over 4 acres in Sector 129, Noida. These plots of land adjoin Max Square, an office development under construction by Max Estates. The acquisition will allow it to create a 6.6-acre mixed-use campus. The total development size including Max Square (0.7 million square feet) for this campus will be 1.5 to 2.0 million square feet.
âWith these new acquisitions and a very strong portfolio of projects under development, we expect to end FY23 with a development portfolio of 6-7 million square feet, which will be 3 times larger than the footprint of fiscal year 22. As we prepare to scale, our goal is to strengthen the organization’s ability and capacity to drive seamless execution in commercial and residential opportunities, staying true to our goal of improving quality and thereby unlocking multiple value for all our stakeholders,â said Sahil Vachani, MD and CEO of MaxVIL.
Max Ventures & Industries Limited (MaxVIL), one of three holding companies of the $4 billion Max Group, also announced its Q1FY23 results.
The company’s consolidated revenue increased 47% YoY to Rs273m in Q1FY23, while total rental income (Max Towers + Max House) increased 45% YoY to Rs120m at T1FY23.
The completed Class A+ office projects of Max Estates – Max Towers and Max House Phase 1 are now 100% leased at a 25-30% rental premium at the micro-market.
The last lease was signed at Rs 130+ per Sq. ft. per month defining the path for the next revaluation cycle.
Max Estates aims to replicate this in upcoming offerings – Max Square and Max House Phase 2. Work on both projects is on track and expected to be completed by Q4FY23 and Q2FY24 respectively.
The company’s third office development – Max Square, is pre-certified as an IGBC Platinum rated Grade A+ office project with a total leasable area of ââ0.7 million square feet. New York Life Insurance Company is a 49% partner in the project. Max House Phase 2 will be built on the same lines as Phase 1 with a larger leasable area of ââ0.15 million square feet.
Max Estates began its residential journey with the acquisition of a 10-acre plot of land on Noida Highway in Sector 128 through the acquisition of 100% equity in Accord Hotels and Resorts Private Limited, which owns this land as the only asset.
This mixed-use residential project will have an estimated salable area of ââone million square feet.
The project is expected to be developed as a luxury residential development with a total sales potential of over Rs 1,300 crore. This will meet the needs of the high-end residential market with the promise of improving quality of life through the implementation of our LiveWell philosophy.
The first phase is expected to launch in the first half of next calendar year and is expected to be delivered within 3 years of launch.
On the composite merger scheme whereby MaxVIL will merge with Max Estates Limited, the company has received stock exchange approval and has filed a merger application with the National Company Law Tribunal, Chandigarh. The merger is expected to be completed in 6-9 months subject to NCLT approvals.
This will simplify the corporate structure and also allow the company to rebrand the entity as Max Estates â a move that will resonate with real estate as the company’s sole focus.
Max Estates plans to acquire and develop 1 million square feet of high-end residential and commercial office space each year.