Max Estates Limited, post scheme of arrangement with Max Ventures and Industries Limited, is now listed on the Indian Stock Exchanges, NSE and BSE.
The Company has achieved the conclusion of the reverse merger of Max Ventures and Industries Limited (MVIL) into Max Estates Limited (MEL) – a historical milestone in the Company’s timeline. This entails that MVIL will be amalgamated, and all the assets and liabilities of MVIL will vest with MEL.
The newly listed entity, named Max Estates Limited, will truly reflect the business's vision, nature, and aspirations to scale the Real Estate (RE) footprint in Delhi-NCR. The merger would provide clarity and will simplify the corporate structure and enable the company to re-name the entity as Max Estates – a move that will resonate with real estate as the only focus of the company.
Over last few years, Max Estates has strategically curated a development portfolio encompassing 8 million square feet, aligning with its strategy of "One region, multiple asset" classes. This portfolio represents a well-rounded diversity within the Delhi-NCR region, encompassing various geographical locations, asset categories (both commercial and residential), and risk profiles, which encompass completed projects, those nearing completion, and those in the design phase.
In August 2022, the Company’s SPV had successfully won the bid for the two land parcels for a total cost of Rs. 220 crores. Both land parcels combined spread across ~4 acres and are located in Sector 129, Noida, adjacent to ‘Max Square’ which is now complete. The total development size of the acquired land parcel including the completed Max Square project (~0.7 Mn square feet) will entail a mixed use total office led space development of ~1.8 Mn square feet.
The Company has fully paid Rs. 220 crores for this land with no outstanding payments. The Company has also received Rs. 107.5 crores from New York Life Insurance Company (NYL), for its 49% equity stake in this project. Lease rental income from Max Square Two is expected to be INR 1,000-1,150 Mn at 100% occupancy.
A ~7.15 acre land parcel with a development potential of ~1.6 Mn sqft, located right on Golf Course Extension Road and is at 10 minutes driving distance from Sector 56 metro station on Golf course road. Lease rental income from Max 65 is expected to be INR 1,600-2,000 Mn at 100% occupancy.
On 100% occupancy basis the total annual rental income from the portfolio is expected to be INR 3,900-4,600 Mn
Max Estates’ projects command premium to prevailing rentals in the micromarket. This is a clear testimony of the organisation’s WorkWell philosophy, which ensures holistic wellbeing of its users, enabled by a unique ecosystem of spaces including F&B and several amenities, as well as acceptance and appreciation of its impeccable service standards and design led sustainable developments.
Azure Hospitality: The Company has decided to conservatively take a 100% provision on the investments made in Azure Hospitality. The provision is for Rs. 45 crores in Q1FY24 post which the Company has no further non-core investments.
Commenting on the MEL listing, Sahil Vachani, MD & CEO of Max Estates said, “This is a momentous occasion for us as we get listed as Max Estates on the Stock Exchanges. As a 100% real estate focused Company, Max Estates Limited aims to bring Max Group’s values of Sevabhav, Excellence and Credibility to the Indian real estate sector with the purpose of “Enhancing quality of life through spaces it creates”. Over years, Max Estates has stayed true to its commitment of creating spaces that enable wellbeing with an unwavering focus on ‘LiveWell’ and ‘WorkWell’ as our philosophy. We endeavour to scale the portfolio beyond 8 million square feet by adding at least 1 mn square feet per year on an average to each of residential and commercial asset classes while maintaining our distinctive source of differentiation, which is ‘design and hospitality led consumer experience’.
