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Max Estates, a subsidiary of Max Ventures and Industries Limited (MaxVIL), has so far deployed equity worth approximately Rs 2,000 crore, and funded the acquisition of four projects in Noida and Gurugram, respectively, according to MaxVIL MD and CEO Sahil Vachani.
We have acquired these four projects entirely through equity. We raised the funds by selling our packaging company last year. In November 2021, MaxVIL sold its 51 percent stake in the specialty packaging films business to Toppan Printing for a value of Rs 1,350 crore, converting into an equity value of about Rs 600-650 crore.
“We are confident about the 2,000 crore of equity invested; that will drive Max Estates to the next level, and we will become one of the region’s top real estate developers,” he said. The company’s total investment in both the residential and commercial segments is around Rs 3,300-3,400 crore.
Over the last three years, Max Estates has completed three commercial projects and one residential project. We are now looking to scale up in a more significant way. “We have announced four new acquisitions in the last year: a residential project in Noida, a residential project in Gurugram, a commercial project in Noida, and another commercial project in Gurugram,” he said.
Along with that, two new commercial projects are being developed by the company. It recently purchased a 4-acre land parcel in Noida through an auction, and a 7-acre land parcel in Gurugram. “Both are commercial land parcels on which we will develop about 2.8 million square feet of office and retail space,” he explained.
This format was created in collaboration with New York Life Insurance. They are our associates, and we are their sole Indian partner. This is a platform approach in which they will own 49 percent of the equity and Max Estates will own 51 percent of the equity in every project with which we collaborate.
In terms of residential space, the company has purchased an outright land parcel in Sector 128 of Noida, spanning 10 acres.
It has also signed a joint development agreement for 12 acres in Gurugram, and “both of these are approximately 3.5 million square feet.” Max Estates’ total investment over the next three to four years will be around Rs 3,300 crore across these four projects.”
These four projects were acquired by the company in the last eight months. The residential project will most likely be launched in the first half of this calendar year. The Gurugram residential project will be launched in early 2024.
We have already started work on our commercial projects, which are being built for lease. “Hopefully, in the next 3-4 years, these commercial projects will be available for leasing,” he said.