Max Estates now a pure play listed Real Estate company, Garners Prelaunch sales of Rs 1,800 Crores in its first Residential Project in Noida

Max Estates Limited, the real estate arm of the Max Group announced its Q2 & H1 FY24 results on November 7, 2023.

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 truly reflects our vision, the nature of our business, and aspirations to scale the Real Estate (RE) footprint in Delhi-NCR.

Alongside the successful launch of Estate 128 in Q2 FY 24, Max Estates’ first luxury residential development in Delhi NCR with a Booking Value worth ~INR 1800 Cr already locked in and sales collections of ~Rs 330 Cr,

the company has also witnessed very positive traction for commercial office leasing for both of its new assets – Max Square on Noida Expressway and Max House – Phase II in South Delhi.

NDTV has leased ~1,28,000 square feet at Max Square in Noida.

This is a clear reflection of Noida Expressway and particularly Max Square, which is fast emerging as a new center for corporate offices beyond a back-office hub.

With this, Max Square, within 6-9 months of receiving its completion, has transacted (LOI Included) ~50 percent of the office space including 100 percent of the retail/F&B is committed.

The office space will also be housing Skootr, a leading managed office player who has leased ~103,000 square feet of super built-up area as well as several other leading MNCs and domestic companies.

In parallel, the company has pre-leased 54% of the office space at Max House – Phase II even before receiving completion, which is expected in Q3 FY 24.

The choice of Max Square by NDTV and the pre-leasing traction of Max House Phase II are an illustration of the ‘flight to quality’, a phenomenon that got accelerated post-COVID with a focus on experience, well-being, and sustainability in an office ecosystem.  

Key Highlights of the Portfolio: WorkWell Experiences: Max Towers, Noida Total leased area owned by Max Estates in Max Towers continues to be 100% occupied.

Lease rental income from Max Towers stood at INR 182 Mn in H1 FY24. Max House, Okhla, New Delhi Max House Phase 1 continues to be 100% occupied.

Lease rental income from Max House Phase 1 stood at INR 70 Mn in H1 FY24. Max Square, Noida Total leasable area for the project is ~0.7 Mn Sq. Ft; New York Life Insurance Company is a 49% partner in the project.

The project was completed as per schedule and the development is IGBC Platinum certified under the Green New Buildings Rating System.

Within 6-9 months of receiving the occupancy certificate, ~50% of the total leasable area of Max Square has been leased (LOIs included) at a premium of ~25%-30% over the prevailing market rate in the micro market.

The company is confident of achieving 100 percent leasing over the next 6-12 months. Lease rental income from Max Square stood at INR 16 Mn in H1 FY24.

Max House Phase 2, Okhla, New Delhi Max House Phase 2 is an extension of Max House Phase 1, with a larger leasable area of ~0.15 Mn Sq.

The project is in the final stages of completion.

The Project has received excellent traction in terms of demand from both existing tenants of already leased Max projects and new potential tenants.

Already, – 54% of the total leasable area has been pre-leased (LOIs included) at a premium of ~25%-30% over the prevailing market rate in the micro market. The company is confident of achieving 100 percent leasing within a year from completion expected in Q3 FY 24.

Max Square Two, Noida In August 2022, the Company’s SPV 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 dues towards the land.

The Company has also received ~Rs. 127 crores from a total committed amount of Rs 196 Crores from New York Life Insurance Company (NYL), for its 49% equity stake in this project.

The company is on track to finalize the design and receive all approvals to start the construction in Q4 FY 24.  

Max 65, Golf Course Extension, Gurugram A ~7.15-acre land parcel with a leasable area of ~1.6 Mn sq. ft.,

located right on Golf Course Extension Road, a prime office vector marking MEL’s entry in Gurgaon.

The location is at 10 minutes driving distance from Sector 56 metro station on Golf Course Road.

Gensler is a leading global architect designing future-ready office development with a healthy mix of F&B-centric retail that the micro market lacks today.

The company is on track to finalize the design and receive all approvals to start the construction at the start of Q4 FY 24.

The Company has also received Rs. 183 crores from a total committed amount of ~Rs 290 Crores from New York Life Insurance Company (NYL), for its 49% equity stake in this project.

On a 100% occupancy basis, the total annual rental income from the portfolio is expected to be INR 3,950-4,710 Mn. Max Estates’ projects command a premium to prevailing rentals in the micro market.

This is a clear testimony of the organization’s WorkWell philosophy, which ensures the holistic well-being 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.

LiveWell Experiences:  Estate 128, Noida Company’s first luxury residential project in NCR has been fully sold and has garnered a pre-formal launch sale of Rs. 1,800+ crores.

Over the last three months, the Company has collected ~Rs. 330 crores for the project.

The payment schedule for this project is construction translating into ~25% collection every year.

The construction has begun and is on track to deliver the occupancy well within RERA’s promised timelines.

The company’s first luxury residential project in NCR has been fully sold and has garnered a pre-formal launch sale of Rs. 1,800+ crores.

Over the last three months, the Company has collected ~Rs. 330 crores for the project Commenting on the same, Sahil Vachani, MD & CEO of Max Estates said, “We are delighted to have NDTV set up its corporate office at Max Square.

We at Max Estates are committed to our purpose of ‘Enhancing Quality of Life through Spaces we Create’ and Max Square is designed on the theme of ‘Nature and Nurture’, where its users will not just work but also flourish, enabled by sustainable and health and well-being attributes of the office development.

Over the past 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.

Our portfolio represents a well-rounded diversity within the Delhi-NCR region, encompassing various geographical locations, asset categories, and risk profiles, which encompass completed projects, those nearing completion, and those in the design phase.

We stay true to our commitment to creating spaces that truly enable ‘LiveWell’ and ‘WorkWell’ as we continue the journey of scaling 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.

With tailwinds in the residential segment and the return to office phenomenon gaining traction driving demand for Grade A+ institutionally owned office space, we look forward to the journey ahead with a great degree of excitement as well as a high sense of responsibility.” Corporate Comm India (CCI Newswire)