Max Estates’ Massive Gurugram Residential Expansion: Powering Growth and Opportunity
Max Estates, the real estate arm of the Max Group, has sealed deals for a significant group housing residential project spanning 18.23 acres in Gurugram, with an estimated gross development value (GDV) exceeding Rs 9,000 crore. This venture, backed by a development area of approximately 4 million sq ft, marks a substantial expansion for Max Estates.
The newly acquired land is adjacent to the company’s existing 11.80 acres on Dwarka Expressway in sector 36 A, Gurugram, where Max Estates had previously entered a joint development agreement (JDA) last year. Together, these projects represent a combined GDV potential exceeding Rs 13,000 crore, with plans to develop and sell an area exceeding 6.4 million sq ft over time.
Rishi Raj, the Chief Operating Officer, stated, “This aligns with our growth strategy of securing at least 2 million sq ft of development opportunity in Delhi NCR annually. Upon completion of this transaction, it portfolio will expand by 50 per cent, from 8 to 12 million sq ft of development potential.”
The binding agreements entail securing development opportunities through JDAs over three phases, along with obtaining the necessary licenses under the transit-oriented development (TOD) policy in collaboration with the landowner.
Additionally, Max Estates recently inked a memorandum of understanding (MoU) with New York Life Insurance Company (NYL) for investments in its wholly-owned subsidiaries, Max Towers (MTPL) and Pharmax Corporation (PCL).
Under the MoU, NYL will subscribe to 1,07,89,330 equity shares to be issued by MTPL for approximately Rs 565.25 million and acquire 2,63,76,841 equity shares of MTPL from Max Estates for approximately Rs 1,381.88 million. NYL will also subscribe to 74,48,814 equity shares to be issued by PCL for approximately Rs 347.56 million and acquire 3,40,64,700 equity shares of PCL from Max Estates for approximately Rs 1,589.46 million.
Upon completion, NYL will hold 51% and 49% of the share capital of MTPL and PCL, respectively, on a fully diluted basis.
To facilitate these developments, the board of directors has approved a corporate guarantee of Rs 4500 million for Max Estates 128, a wholly-owned subsidiary, to avail financial facilities from Standard Chartered Bank and Standard Chartered Capital.
This strategic expansion and collaboration with NYL are poised to significantly enhance Max Estates’ footprint and market presence in the real estate sector, positioning it for substantial growth in the future.
Read more: Booming Real Estate Sector Growth: Surging Bank Loans and Sales Power Ahead
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