Max Estates with New Acquisitions Expands CRE footprint in Noida & Gurugram

BY Realty+

Max Estates with new acquisitions is set to emerge as a leading real estate player in the NCR Region. It entered residential space with the acquisition of ~1 mn. sq. ft. of residential development opportunity in H1; enters Gurugram CRE market with the acquisition of 1.6 mn sq. ft. of development opportunity in H1. Expands CRE footprint in Noida by winning a bid for 1 mn sq. ft. of development potential in H1. 

Max Ventures & Industries Limited (MaxVIL), one of the three holding companies of the $4-Bn Max Group, announced its Q2 & H1 FY23 results. MaxVIL H1 FY23 consolidated revenue is up 62% YoY to INR 548 Mn. The consolidated EBITDA up by 64% YoY to INR 170 Mn. The consolidated PAT stood at INR 100 Mn in H1FY23 vs. INR (-) 21 Mn in H1FY22.  The total lease rental income (Max Towers + Max House) up by 48% YoY to INR 238 Mn in H1FY23. The Max Asset Services Revenue stood at INR 155 Mn in H1FY23. 

Max Estates’ completed Grade A+ office projects – Max Towers and Phase 1 of Max House are 100% leased at a ~25-30% premium to the micro market. The collections continue to be on time and in full. The premium earned is a clear testimony of the Company’s Work Well philosophy, which ensures the holistic well-being of its users, enabled by a unique ecosystem of spaces including F&B options and several amenities, impeccable service standards, and design-led sustainable developments.

 Assets under Development - Max Square and Max House Phase 2: Work on both projects is on track and is expected to be completed by Q4FY23 and Q2FY24 respectively. The company has got a robust pipeline of leasing for Max Square and is confident to fully lease the development by the end of CY24. Max House Phase 2 will be built on similar lines to Phase 1 with a larger leasable area of ~0.15 Mn sq. ft. A very healthy leasing pipeline is already in place, including interest from existing tenants looking to expand within the campus.

 The Company has built a strong portfolio of projects which will fuel the next level of growth: It entered Gurugram with 1.6 Mn sq. ft. commercial development opportunity. Th e company acquires 100% of the equity of Acreage Builders Private Limited, at an enterprise value of INR 322.50 Crores, subject to the seller obtaining requisite approvals. The company will develop a best?in?class Grade A+ commercial space on this land and as part of the Capital Light philosophy, will explore co-investment opportunities with multiple financial institutions/real estate funds.

Acquired ~10 acres of mixed-use residential land parcel in Noida with total sales potential in excess of INR 1,300 Crores: The Company acquired 100% of equity in Accord Hotels and Resorts Private Limited for INR 306 Crores. This mixed-use residential project will have an estimated saleable area of ~1 Mn sq. ft. The project is planned to be developed in 2 phases and will cater to the premium end of the residential market. The first phase is planned to be launched in the first half of the next calendar year and is expected to be delivered within 3 years of launch.

The successful bidder for ~4 acres land parcel located in Sector 129, Noida, auctioned by Axis Bank: On August 5, 2022, the Company through its SPV had bid for the two land parcels being auctioned by Axis Bank. Axis Bank has sent a confirmation letter ascertaining the Company as the successful bidder for both land parcels. The acquisition of these two land parcels contiguous to the Max Square project will enable the company to create a ~6.6-acre office-led multi-use campus. The Company will acquire both these land parcels at a total cost of INR 220 crores subject to customary statutory approvals. The total development size including Max Square (~0.7 mn sq ft) for this campus will be 1.5 to 2.0 mn sq. ft.

New York Life Insurance has been onboarded as an equity co-investor for the Max Square phase 2 project. New York Life has committed to invest INR 196 crores for a 49% equity stake. Max Estates will be responsible for the final delivery of the project and will be entitled to a development fee on the same.

On the composite scheme of amalgamation whereby MaxVIL will merge with Max Estates Limited, the company has received the approval from the Stock Exchanges and has filed first motion petition for merger with National Company Law Tribunal (NCLT), Chandigarh, and NCLT vide its order dated October 14, 2022 has ordered to convene the meeting of shareholders of Max Ventures and Industries Limited and meeting of secured creditors of Max Estates Limited on December 3, 2022. The amalgamation is expected to be completed in first half of next year. This will simplify the corporate structure and also enable us to re-name the entity as Max Estates – a move that will resonate with real estate as the only focus of the company.

Commenting on the performance, Sahil Vachani, MD & CEO of MaxVIL said, “During the first half of FY23, the Company has deployed the capital raised from the Packaging Films stake sale. MVIL has strengthened its portfolio in NCR in line with its stated position of becoming one of the top 3 developers. The Company has successfully forayed into the residential segment, thereby adding a new asset class in its portfolio and diversified its footprint to Gurugram in the Commercial segment. We are fully geared in terms of people and talent to execute this next phase of growth for MVIL. With strong leasing dynamics for Grade A+ properties combined with the Company’s WorkWell and LiveWell Philosophies, we are confident to be a brand of choice for customers in both the Commercial and Residential segment.”

Tags : Max Estates new Acquisitions expand footprint Noida Gurugram real estate NCR residential space development opportunity Sahil Vachani MD & CEO MaxVIL