Max Estates, a subsidiary of Max Ventures and Industries Ltd (MaxVIL), is expected to invest close to Rs 3,400 crore for new residential and commercial projects in Noida and Gurugram over the next four to five years, said Sahil Vachani, Managing Director (MD) and Chief Executive Officer (CEO) of the company.
The company has acquired a land parcel in Sector 128 in Noida and entered into a joint development agreement with a land owner for a housing project in Gurugram. It intends to launch close to 250 premium luxury units in Noida in July this year and an inter-generational luxury project in Gurugram comprising around 1,200 units in the next calendar year, he said.
The real estate arm of Max Group is also planning to develop two office complexes in Noida and Gurugram spread over an area of 26 lakh square feet (sq ft) leasable area.
“The estimated cost of developing these four projects is around Rs 3,400 crore over the next four to five years,” he said, adding the sales revenue would be around Rs 4,500 crore from the two residential projects.
Max Estates currently has a portfolio of 80 lakh sq ft of completed, ongoing and upcoming projects. Of this, 35 lakh sq ft is housing and the rest is commercial.
“Our aim is to develop residential projects spread across 1 mn and 1 mn commercial every year,” he added.
“Our first residential project in Noida will be launched in July this year. This is located in Sector 128, adjacent to Axis House. It is a 10-acre rectangular land parcel. This is expected to be the least dense residential project with 250 units and will have seven acres of multi green layered landscape. It will be spread across one million sq ft and is expected to have a Rs 1,300-crore plus top line,” said the company’s Chief Operating Officer (COO) Rishi Raj.
The company has received the completion certificate for its commercial project in Sector 129 in Noida. This is expected to be a seven-acre campus of which four acres have been acquired from Axis Bank. “We will be developing another one million sq ft in the four-acre parcel and construction will start in September or October this year. It may take three to four years to deliver this mixed-use campus in Noida by Max Estates,” he said.
For the Gurugram commercial project, he said that the company has acquired close to 7.15 acres of land that has around 1.6 mn sq ft of leasable area development potential. “We will begin construction for this around September-October this year. This retail and office development will be delivered in two phases,” he added.
The company plans to come up with a residential project in Sector 36 A in Gurugram. This joint venture project will be spread across 11.8 acres. “It will the first inter-generational residential community that Delhi-NCR has seen. (It would have a) development potential of 2.4 million sq ft, and top line potential of Rs 3,200 crore plus. We will begin construction on this in the first half of 2024,” he said.
Raj said that it is expected to be a transit-oriented development (TOD) project comprising 1,200-1,400 units which will be a combination of senior living and non-senior living.
Vachani said that the company has tied up with New York Life Insurance Company as equity partner for commercial projects at the project level. “New York Life Insurance Company has so far committed Rs 800 crore in Max Estates commercial projects. New York Life Insurance also has around 23 per cent stake in MaxVIL, which is listed on the stock exchanges,” he said.
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.
To a query on rental income, Raj said that the company earns close to Rs 100 crore from its completed assets and the annuity income is set to reach Rs 450-500 crore in the next four to five years once all these upcoming office assets are completed.
Max Estates was set up in 2016. Its first project was 222 Rajpur, a premier residential community comprising 22 villas in Dehradun. It has also developed three commercial projects Max Towers and Max Square in Noida, and Max House in Delhi.
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