New York Life Insurance to invest Rs 290 crore in Max Estates' SPV in Gurugram

New York Life Insurance to invest Rs 290 crore in Max Estates’ SPV in Gurugram

New York Life Insurance Co, a US based mutual life insurance company, has proposed to invest
Rs 290 crore for a 49% equity stake in a commercial project of Max Estates’ SPV in Gurgaon.
Max Estates Limited has completed the acquisition of balance 2.39% equity share capital
of Acreage Builders Private Limited (ABPL). Max and New York Life will be 51:49 shareholders
in ABPL, which has a license to develop commercial project over an area measuring 7.15 acres
located at Golf Course Extension Road, Gurugram.
Total value of the transaction is Rs 322.5 crore.
Total leasable area available after the construction will be 1.6 million sqft with a revenue
potential of Rs 160 – 200 crore per annum.
“This year, the company exited the speciality packaging films business and redeployed the
capital to expand real estate portfolio. The company has entered in the residential segment
thereby adding a new asset class in its portfolio,” said Sahil Vachani, MD & CEO of MaxVIL.
New York Life hold 23% in Max Ventures and Industries Limited, the holding company of the
group and have also co-invested in Max Square Phase 1 and Phase 2 for 49% stake taking their
cumulative commitment in the group to Rs 800 crore.
“With acquisitions this year (completed and in pipeline), we will be ending FY 23 with a real
estate portfolio of 7-8 million sq ft with diversified across Delhi NCR, asset classes and risk
spectrum,” Vachani said.
Max Estates’ completed office projects – Max Towers and Phase 1 of Max House are 100%
leased at a 25-30% premium to the micro market.
Work on Max Square and Max House Phase 2 is expected to be completed by Q4FY23 and
Q2FY24 respectively. Max House Phase 2 will be built on the similar lines to Phase 1 with a
larger leasable area of .15 million sq. ft.
The company has planned to launch a residential project in Noida by mid of CY 23.
“This will be a boutique development with the gross development value of Rs 1300 crore,” the
company said in a statement.
This mixed-use residential led project will have an estimated saleable area of one million sq. ft.
On the composite scheme of amalgamation where MaxVIL will merge with Max Estates Limited,
the company has received the approval from the creditors and shareholders with a second
meeting with NCLT expected in May 2023. The amalgamation is expected to be complete in the
first half of 2023.
The company has reported consolidated revenue of Rs 850 million in 9M FY23 up by 18% YoY.
Max Estates plans to acquire and develop 1 million square feet of premium residential and
commercial office spaces each year.
In the last six months the company completed three land transactions, acquiring around 22
acres for Rs 850 crore.
One of these land lots will be used for residential development, while the rest will be used for
commercial buildings.
Max is in talks for another land acquisition on the Dwarka Expressway in Gurgaon for residential
development.