New York Life Insurance Co, the US-based mutual life insurance company, has proposed investing Rs 196 crore for a 49% equity stake in Max Estates’ SPV commercial project in Noida.
In August, Max Estates, the real estate division of the Max group, paid Rs 220 crore to Axis Bank for a 4-acre plot of land in Sector129, Noida.
These land parcels are close to Max Square, an office building now built by Max Estates and New York Life Insurance Company.
It will be able to build a 6.6-acre office-led mixed land use campus owing to the acquisition. This complex will have a total development area of 1.5–2.0 million sq ft, including Max Square (0.7 million sq ft).
“New York Life Insurance Company has a long-standing relationship with Max Group and Max Estates and has been a valued partner with us through our journey. This transaction will enable Max Estates to expand its CRE portfolio while achieving its aspiration of becoming a leading real estate player in the Delhi NCR region,” said Sahil Vachani, MD & CEO of MaxVIL.
The project’s final delivery will be handled by Max Estates, who will also be entitled to a development fee.
“This will not only provide prospective tenants of Max Square an option to expand, but also enable access to an integrated mixed-use campus that will be unique to this micro market. The development will have direct access to Noida-Greater Noida Expressway, offering excellent connectivity to and from Noida, Delhi and broader Delhi NCR via both road and metro,” the company said.
Due to the acquisition of two land parcels in Noida for residential development, Max Estates expects to scale up the size of its current real estate business development portfolio by FY23.
Max Estates began its residential development journey by purchasing a 10-acre land parcel in Sector 128 of the Noida Expressway by acquiring 100% of Accord Hotels and Resorts Private Limited, which owns this land as its asset.
The estimated saleable area of this residential-led mixed-use project is one million sq ft.
The project would be developed as a boutique luxury residential community with potential revenue of more than Rs 1,300 crore. This will serve the high-end residential market and promises to improve quality of life by putting our LiveWell Philosophy into reality.
The first phase is expected to launch in the first half of the following year and be completed three years after that.
Max Estates wants to buy and build 1 million sq ft of premium residences and office space for businesses every year.