New York Life Insurance Takes 49% Equity in Max Estates 1st Commercial Project
Max Ventures & Industries Limited (MaxVIL), announced its Q3 & 9M FY23 results. The company has demonstrated growth in its top-line revenue. The Consolidated Revenue was up by 18% YoY to INR 850 Mn in 9M FY23. Consolidated EBITDA up by 18% YoY to INR 251 Mn in 9M FY23. Consolidated PAT stood at INR 104 Mn in 9M FY23 vs. INR 10 Mn in 9M FY22. The Total Lease Rental Income (Max Towers + Max House) up by 39% YoY to INR 357 Mn. The Max Asset Services Revenue stood at INR 315 Mn in 9M FY22. These results have been highly anticipated by industry watchers and investors alike. MEL has completed the acquisition of balance 2.39% equity share capital of Acreage Builders Private Limited (ABPL), at an enterprise value on 100% basis of INR 322.50 Crs. Consequent to the completion of acquisition, ABPL has become a step-down wholly owned subsidiary of the Company through MEL. Also, New York Life Insurance has been onboarded as an equity investor committing Rs 290 crores in Acreage Builders Private Limited (ABPL). MEL and New York Life shall be 51:49 shareholders, respectively in ABPL, which has a license to develop commercial project over an area measuring 7.15 acres located at Golf Course Extension Road, Gurugram. The developable leasable area is ~1.6 million sq. ft. with a revenue potential of ~Rs. 160 – 200 crores per annum. New York Life, a Financial Services Company and the largest mutual life insurer in the USA has been our strategic partner in the real estate business since 2017. They hold 23% in the Holding Company i.e., Max Ventures and Industries Limited, and have also co-invested in Max Square Phase 1 & Phase 2 for 49% stake. Taking their cumulative commitment in the group to Rs 800 Crores. They continue to evaluate co-investment, as a strategic investor, in the CRE business. Leasing momentum continues: 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. Max Square and Max House Phase 2: Work on both the 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 project over 12-18 months post completion in Q4 FY 23. Max House Phase 2 will be built on the similar lines to Phase 1 with a larger leasable area of ~0.15 million sq. ft. Plan to launch a residential project in Noida by mid of CY 23. This will be a boutique development promising an elevated quality of life through pioneering design, wellness, and sustainability and will cater to the premium end of the residential market. The gross development value of the project stands at INR 1300 Cr+.
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