Max Estates To Invest Rs 3,400 Cr To Develop 4 Projects In Noida, Gurugram

Max Group's realty firm Max Estates will invest around Rs 3,400 crore over the next five years to develop two housing and two commercial projects in Noida and Gurugram as part of its expansion plan.

Max Estates, which is subsidiary of Max Ventures and Industries Ltd (MaxVIL), has developed three premium office complex in Noida and Delhi, comprising around 15.5 lakh square feet area and one small boutique luxury housing project in Dehradun.

"We have entered into residential real estate segment. We have acquired one land parcel in Noida and entered into a joint development agreement with landowner for a housing project in Gurugram," MaxVIL MD and CEO Sahil Vachani told reporters here.

He said the company would launch housing project in Noida in July comprising 250 units, while the one in Gurugram, having 1,200-1,400 units, will be launched next year.

That apart, Max Estates will develop two office complexes in Noida and Gurugram comprising 26 lakh square feet leasable area.

Asked about the estimated cost for development of these four upcoming projects, Vachani said the total investment is expected to be around Rs 3,000-3,400 crore over the next 4-5 years.

Vachani said the company is expecting a sales revenue of Rs 4,500 crore from these two upcoming housing projects.

For development of commercial projects which are capital extensive, Vachani said the company has tied up with New York Life Insurance Company as equity partner at project level.

He said the New York Life Insurance has so far committed Rs 800 crore in Max Estates commercial projects.

That apart, New York Life Insurance also has around 23 per cent stake in MaxVIL, which is listed on stock exchanges.

Recently, New York Life Insurance Company announced an investment of Rs 290 crore to acquire a 49 per cent stake in Max Estates' upcoming commercial project in Gurugram.

Vachani said the company gives on lease office space.

On rental income, Max Estates Ltd COO Rishi Raj said the company is currently earning around Rs 100 crore from its completed assets and the annuity income is set to reach Rs 450-500 crore in the next 4-5 years once all these upcoming office assets get completed.

Raj said the Max Estates now has a portfolio of 80 lakh square feet of completed, ongoing and upcoming projects. Out of this, 35 lakh square feet is housing and rest commercial.

MaxVIL owns and operates a real estate business through its 100 per cent subsidiary Max Estates.

Established in 2016, Max Estates Ltd has developed three commercial (office) projects 'Max Towers' and 'Max Square' in Noida, and 'Max House' in Delhi.

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