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The Max Group’s real estate division of Max Estates, has signed legally binding contracts for the possible development of 18.23 acres in Gurugram, which have a gross development value (GDV) estimated to be over Rs 9000 crore. The site is located behind a development area that spans more than 4 million square feet.
This property lot is next to the 11.80 acres of existing land that Max Estates completed a joint development agreement (JDA) on last year on the Dwarka Expressway in sector 36 A, Gurugram.
Together, the two projects suggest a GDV potential of more than Rs 13,000 crore throughout the course of development and sales of an area larger than 6.4 million square feet.
Max Estates Plans To Develop 2 Million Square Foot Every Year In Delhi NCR
This is an integral part of our stated growth strategy of securing at least 2 million square foot of development opportunity in Delhi NCR region every year, commented Rishi Raj, COO of Max Estates. After this deal closes, Max Estates’ development potential will increase from 8 to 12 million square feet, a 50% increase in the portfolio.
The legally binding agreement calls for working with the landowner to obtain a license under the Transit Orient Development (TOD) policy and obtaining development opportunities through JDAs over the course of three tranches.
Max Estates Signed Mou With New York Life Insurance Company
Recently, the business and New York Life Insurance Company (NYL) inked a memorandum of understanding (MoU) for the company’s investment in its wholly-owned subsidiaries, Pharmax Corporation (PCL) and Max Towers (MTPL).
In exchange for an estimated total of Rs 565.25 million, NYL will subscribe for 1,07,89,330 equity shares that MTPL will issue, and it will purchase 2,63,76,841 equity shares of MTPL from the firm for an estimated total of Rs 1,381.88 million.
Max Estates Tie Up With Standard Chartered Bank For Financial Needs
In addition, NYL will purchase 3,40,64,700 equity shares of PCL from the firm for an estimated Rs 1,589.46 million and subscribe for 74,48,814 equity shares that PCL would issue for an overall consideration of around Rs 347.56 million.
After the deal closes, NYL will possess, on a fully diluted basis, 51% and 49% of the share capital of PCL and MTPL, respectively.
The board of directors has granted approval for a corporate guarantee of Rs 4500 million to Max Estates 128, a wholly-owned subsidiary of the company to get financial facilities from Standard Chartered Bank and Standard Chartered Capital.
Max Estates’ Shares Surge 7% To A New High, Jump 27% In Only Two Sessions
Today, May 3, shares of Max Estates surged more than 7% intraday to reach a new high of ₹373.90 on the NSE. This follows an increase of 18.4% during the prior session. The stock has increased by more than 27% in the last two sessions.
Following big deal victories, Max Estates’ stock price has increased. The business obtained an agreement for a residential development project in Gurugram with a gross development value over ₹9,000 crores through its subsidiary Max Estates Gurgaon Two.
Max Estates Deals In Both Residential And Commercial Real Estate
Sahil Vachani, MD and CEO of Max Estates, stated on MEL listing, “We aim to scale the portfolio beyond 8 million square feet by adding at least 1 million square feet per year on average to each of the residential and commercial asset classes while maintaining our distinctive source of differentiation, which is ‘design and hospitality led consumer experience.”
Founded in 2016, Max Estates creates real estate for both residential and business usage. The company’s initiatives include the redevelopment of the office campus, Max House, a commercial office space, and 222 Rajpur, a community of opulent residential villas on Rajpur Road in Dehradun.
Source-ET
