May 4, 2024 Noida, Uttar Pradesh, India
Max Estates Limited (Max Estates), the real estate arm of the Max Group, today announced execution of binding agreements for a potential Group Housing Residential development on 18.23 acres of land with Gross Development Value (GDV) estimated at over INR 9,000 Crore in Gurugram at the back of ~4 mn square feet of development area.
This land parcel is contiguous to its existing 11.80 acres of land on Dwarka Expressway in sector 36 A, Gurugram on which Max Estates had done a Joint Development Agreement (JDA) last year. The company is on track to launch Delhi NCRs first Intergenerational residential community in Q3 of CY 2024 with GDV Potential now re-rated to INR 4,000 Crore.
This helps Max Estates consolidate its position (~30 acres) in sector 36 A on Dwarka Expressway, which with massive infrastructure upgrades has emerged as a prime luxury residential destination in Gurugram. Both opportunities imply a combined GDV potential over time of INR 13,000+ Crore in Gurugram by developing and selling an area over 6.4 mn square feet.
The location stands tall as the perfect hub for premium residential projects within Gurugram owing to its vicinity to the planned Global City as well as having seamless connectivity to the International airport, different parts of Delhi as well as key commercial and residential hubs within Gurugram. With both acquisitions through the Joint Development route, Max Estates has demonstrated tremendous success in expanding through relatively light capital deployment strategies.
Expressing enthusiasm about the recent transaction, Rishi Raj, COO, Max Estates said, “We are delighted to secure this growth opportunity in a very prime residential vector in Delhi NCR within Gurugram. This is integral to our stated growth strategy of securing at least 2 mn square feet of development opportunity in Delhi NCR every year for Max Estates to emerge as a leading real estate brand anchored on its purpose of ‘Enhancing the Quality of Life through the Spaces it creates’.
Post closure of this transaction, the portfolio of Max Estates will grow by 50 percent from 8 to 12 mn square feet of development potential, which is very well diversified in terms of asset classes (commercial office and residential), geographic footprint (Noida, Delhi and Gurugram) and risk spectrum (delivered and under construction).”
The binding agreement envisages securing development opportunities through JDAs over three tranches and undergoing the process of securing license under Transit Orient Development (TOD) policy in collaboration with the landowner. Given the regulatory nature of such transactions, Max Estates advises that the developments are subject to the necessary regulatory approvals. The company looks forward to navigating through the regulatory process efficiently and building near to midterm launch pipelines.