Bullish on the Indian real estate market, Max group firm Max Ventures and Industries Ltd (MaxVIL) is looking to acquire at least two land parcels, outright or through joint ventures, in Delhi-NCR this fiscal year to expand its office portfolio and enter into the residential segment.
MaxVIL, which has a presence in real estate and packaging film businesses, is listed on stock exchanges and posted a total income of nearly Rs 1,190 crore during the last fiscal year.
In an interview with PTI, MaxVIL MD and CEO Sahil Vachani outlined the plan of the company in real estate to develop at least a million square feet each in both commercial and residential segments from 2025 onwards.
He highlighted that the company's first office building 'Max Towers' in Noida, comprising around 6 lakh square feet, has been almost fully leased, while the second office building 'Max House' - having 1 lakh square feet leasable area - at Okhla in the national capital would get fully leased hopefully by December.
The construction works for the second phase at Okhla project of similar size as well as the new office complex 'Max Square', comprising seven lakh square feet of leasable area, on Noida Expressway are progressing well.
The Max Square building is being developed through a joint venture with New York Life Insurance Company, which has a 49 percent stake in the project. ''We have also announced a residential foray.
Our idea is to be focused on the Delhi-NCR market. We will be in multiple asset classes – commercial, office, residential - in all the micro-markets of NCR – Delhi, Gurugram, and Noida,'' Vachani said.
The company will continue to focus on end-users and not investors in all its future development. ''From 2025, we plan to develop 1 million square feet commercial and 1 million square feet residential every year,'' he said.
To expand the business, the company is looking to acquire new projects -- through both greenfield and brownfield routes.
''At any given time, we evaluate 10-12 opportunities. We have full machinery for it. We always look for opportunities, be it greenfield, joint venture, Joint Development Agreement (JDA),'' he said.
Vachani expects the company to launch its first project in the residential segment during the current fiscal, in Noida or Gurugram. The company would target the premium housing segment in a price bracket of Rs 2-5 crore and not ultra-luxury.
Apart from the proposed foray into the housing segment, MaxVIL plans to expand its office portfolio and is looking to add projects in the NCR market. ''We are looking for one office project in Gurugram and Noida. This could be via outright purchase or joint venture,'' he said.
Moreover, Vachani said the company has bid for a stalled project of realty group The 3C Company in Noida and proximity of its Max Towers project.
''The good news is CoC (Committee of Creditors) has approved our bid by 95.6 percent. So, we have already won at the CoC level. We are awaiting approval from the NCLT (National Company Law Tribunal),'' he said.
The project has a total 30 lakh square feet area, of which 10 lakh square feet is an office, 5 lakh square feet retail, 12-13 lakh square feet of a serviced apartment, and a small component of hotels. ''We have a great opportunity,'' he added.
Elaborating on the existing portfolio, Vachani said the Max Towers in Noida, its first commercial project, are now about 97 percent occupied.
''The validation for us is not just occupancy but we have been able to get premium over micro-market. The premium is around 30 percent over the micro-market. This is a validation of our brand, our execution capability, and our single-minded focus on purely customer experience,'' he said.
The second commercial project Max House at Okhla is 20 percent occupied and is expected to be fully leased by the end of this year. The rental income, after the entire leasing of both the buildings, will be about Rs 60 crore annually.
''The main focus for us is customer experience. We don't look at ourselves as merely real estate infrastructure builders. We look at ourselves as an experienced providers. The experience that you get in our building, you will perhaps not get anywhere else,'' he said.
The focus is on health, wellness, convenience, and amenities across its portfolio. ''We have found that the focus on customer experience leads to superior outcomes.''
Talking about the changes in the office market during the COVID pandemic, Vachani said: ''There has been a shift after Covid... It was there before Covid as well but post that the focus is on well-being, health, and hygiene.''
''What we see is that since the pandemic the companies intend to move towards more quality office spaces that promote creativity and innovations,'' he said.
MaxVIL, a part of the leading Indian multi-business conglomerate Max Group, owns and operates a real estate business through its 100 percent subsidiary Max Estates.
Max Speciality Films is a 51:49 strategic partnership with Toppan, Japan. It is one of the leading manufacturers of Biaxially Oriented Polypropylene (BOPP) films including specialty packaging, labels, coating, and thermal lamination films, with a total capacity of 72-kilo tonnes per annum (KTPA).
MaxVIL also has a real estate services and management company 'Max Asset Services' and an investment subsidiary, Max I, which supports real estate entrepreneurial ventures.