Max Estates expands real estate portfolio, targets strong growth
Real Estate

Max Estates expands real estate portfolio, targets strong growth

Max Estates has obtained approval for the building plans for its Sector 128 Noida project and intends to launch the residential project in the middle of the calendar year 2023. The project is estimated to have a gross development value of over Rs 13 billion.

Despite global macro-headwinds and increasing interest rates, the demand for residential properties throughout India has remained robust. The company stated that changing consumer preferences towards ownership, improved affordability for citizens, and the resilience of the domestic economy are the key factors driving this demand. Additionally, the industry is undergoing significant consolidation, resulting in market share gains for organised players.

The total gross development value for Max Estates' two planned residential developments is estimated to exceed Rs 45 billion.

In the fiscal year 2023, the company's consolidated revenue increased by 6 per cent YoY to Rs 1,073 million, while total lease rental income (from Max Towers and Max House) rose by 30 per cent YoY to Rs 483 million.

While the recovery of the global office segment remains gradual and affects the decision-making of major global occupiers in the short term, the Indian economy continues to demonstrate high resilience. This has led to shifts in demand, including a transition from international to domestic clients and sectoral shifts towards manufacturing, BFSI, managed offices, healthcare, and life sciences, and an increase in small and medium-scale transactions. Max Estates intends to adjust and cater to these shifts.

Max Estates has signed a Joint Development Agreement (JDA) for Sector 36A, Gurugram, which has a development potential of 2.4 million sq ft and a gross development value of Rs 32 billion. The company plans to launch this project in the first half of the calendar year 2024.

On February 2, 2023, Max Estates completed the acquisition of the remaining 2.39 per cent equity share capital of Acreage Builders Private Limited (ABPL) with an enterprise value of Rs 3.22 billion. As a result, ABPL has become a wholly owned subsidiary of Max Estates as of February 2, 2023.

New York Life Insurance has also joined as an equity co-investor in Acreage Builders (ABPL). MEL and New York Life will have a 51:49 shareholding ratio, respectively, in ABPL. They will collaborate to develop a commercial office and retail project on a 6.24-acre land, with a license to develop a commercial project over an area of 7.15 acres, utilising ABPL's assets located at Golf Course Extension Road, Gurugram. The developable leasable area is estimated to be 1.6 million sq ft, with a revenue potential of Rs 1.6-2 billion per annum. Construction at the site is planned to commence in the third quarter of fiscal year 2024.

Furthermore, Max Estates is in the final stages of acquiring 4 acres of commercially licensed land from Axis Bank in Sector 129, Noida, through its subsidiary Max Square Limited. New York Life is a 49 per cent joint venture partner in this endeavour. The land is adjacent to Max Square's existing development, and when combined, the two parcels will have a total development potential of 2 million sq ft spread across a 6.6-acre campus.

Over the past 12 months, the company has significantly expanded its real estate portfolio, increasing the development potential from 2 to 8 million sq ft. The portfolio is well-diversified across residential and commercial asset classes, as well as different geographical areas (Noida, Delhi, and Gurugram) and risk levels, including properties that have been delivered, nearing completion, and are under design.

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Max Estates has obtained approval for the building plans for its Sector 128 Noida project and intends to launch the residential project in the middle of the calendar year 2023. The project is estimated to have a gross development value of over Rs 13 billion. Despite global macro-headwinds and increasing interest rates, the demand for residential properties throughout India has remained robust. The company stated that changing consumer preferences towards ownership, improved affordability for citizens, and the resilience of the domestic economy are the key factors driving this demand. Additionally, the industry is undergoing significant consolidation, resulting in market share gains for organised players. The total gross development value for Max Estates' two planned residential developments is estimated to exceed Rs 45 billion. In the fiscal year 2023, the company's consolidated revenue increased by 6 per cent YoY to Rs 1,073 million, while total lease rental income (from Max Towers and Max House) rose by 30 per cent YoY to Rs 483 million. While the recovery of the global office segment remains gradual and affects the decision-making of major global occupiers in the short term, the Indian economy continues to demonstrate high resilience. This has led to shifts in demand, including a transition from international to domestic clients and sectoral shifts towards manufacturing, BFSI, managed offices, healthcare, and life sciences, and an increase in small and medium-scale transactions. Max Estates intends to adjust and cater to these shifts. Max Estates has signed a Joint Development Agreement (JDA) for Sector 36A, Gurugram, which has a development potential of 2.4 million sq ft and a gross development value of Rs 32 billion. The company plans to launch this project in the first half of the calendar year 2024. On February 2, 2023, Max Estates completed the acquisition of the remaining 2.39 per cent equity share capital of Acreage Builders Private Limited (ABPL) with an enterprise value of Rs 3.22 billion. As a result, ABPL has become a wholly owned subsidiary of Max Estates as of February 2, 2023. New York Life Insurance has also joined as an equity co-investor in Acreage Builders (ABPL). MEL and New York Life will have a 51:49 shareholding ratio, respectively, in ABPL. They will collaborate to develop a commercial office and retail project on a 6.24-acre land, with a license to develop a commercial project over an area of 7.15 acres, utilising ABPL's assets located at Golf Course Extension Road, Gurugram. The developable leasable area is estimated to be 1.6 million sq ft, with a revenue potential of Rs 1.6-2 billion per annum. Construction at the site is planned to commence in the third quarter of fiscal year 2024. Furthermore, Max Estates is in the final stages of acquiring 4 acres of commercially licensed land from Axis Bank in Sector 129, Noida, through its subsidiary Max Square Limited. New York Life is a 49 per cent joint venture partner in this endeavour. The land is adjacent to Max Square's existing development, and when combined, the two parcels will have a total development potential of 2 million sq ft spread across a 6.6-acre campus. Over the past 12 months, the company has significantly expanded its real estate portfolio, increasing the development potential from 2 to 8 million sq ft. The portfolio is well-diversified across residential and commercial asset classes, as well as different geographical areas (Noida, Delhi, and Gurugram) and risk levels, including properties that have been delivered, nearing completion, and are under design. Also Read Adani Group looks to monetize the 'non-core' real estate assetsSupertech settles 32 recovery certificates issued by UP-RERA

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