Max Estates, the real estate subsidiary of USD 3 billion business conglomerate Max Group, has started construction of its new commercial project, comprising around 0.7 million sq ft of office and retail spaces, on the Noida Expressway. This is the third commercial project of Max Estates, which is part of Max group's listed entity Max Ventures & Industries (MaxVIL).
Max Estates will develop the project 'Max Square' with New York Life Insurance Company as the financial partner. It will have 51% and the New York Life Insurance Company will have 49% stakes in the special purpose vehicle (SPV) Max Square, formed to develop the 'Max Square' project.
This is the first real estate project by New York Life Insurance Company in India as a financial partner. The project will be built at a cost of approximately Rs 4 billion with an equity infusion of Rs 1.75 billion and a debt funding of Rs 2.25 billion.
Max Estates will be responsible for the final delivery of the project. All statutory approvals including Fire NOC, building plan approval, environmental clearance, mining approval, pollution approval (consent to establish) have been received. The project construction has commenced and the company targets to deliver the same by March 2023.
The company expects the recent disruptions in office space demand to be a temporary phenomenon and thus expects good interest from reputed tenants for Grade A+ commercial office space including for Max Square.
Speaking about the development, Sahil Vachani, MD & CEO, Max Ventures & Industries, said, "The success of our recent commercial real estate projects has enabled us to achieve financial closure for Max Square in a fairly quick period. We are thankful to have received all regulatory approvals in a timely manner despite constraints posed by the pandemic."
"Max Square has been conceptualized as an eco-friendly complex. It has been designed in line with our differentiated philosophy of WorkWell which enables higher productivity, a vibrant workplace community combined with wellness and recreation measures. It incorporates elements for the new normal including state-of-art air-filtration and contactless utilities," he added.
Max Estate has so far delivered two commercial real estate projects in NCR; one is Max Towers, Noida and second is Max House, Okhla, Delhi.Total leasable area in Max Towers (owned directly + leasable rights for area owned by Investors), Noida stands at ~6 lakh sq. ft. of this 74% has been leased out so far. Out of the total area leased, ~74,000 sq. ft. was recently leased to marquee corporates.
Phase 1 of the Max House, Okhla compressing of ~1,05,000 Sq. Ft. leasable area has been launched for leasing recently. Phase 2 of the project; of similar size to phase 1 is targeted to start construction in Q4 FY21.
Besides real estate, MaxVIL is also into specialty packaging films.
Shares of Max Ventures and Industries gained Rs 0.45, or 1.13%, to trade at Rs 40.30. The total volume of shares traded was 54,778 at the BSE (11.40 a.m., Monday).
