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MaxVIL gains after subsidiary onboards New York Life as co-investor for Noida project

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Capital Market
Last Updated : Sep 28 2022 | 10:50 AM IST

Max Ventures and Industries added 2.70% to Rs 142.70 after the company announced that its real estate arm Max Estates has onboarded New York Life Insurance Company (NYL), as co-investor for its Office Project at Noida.

The bid of Max Square, Max Estates' SPV, for two land parcels auctioned by Axis Bank for a total cost of Rs 220 crore was accepted in early August.

Both land parcels, in Sector 129, Noida, are spread across approximately 4 acres combined and are contiguous to Max Estates' under-construction grade A+ commercial office project, 'Max Square' which is the 3rd office development by Max Estates in Delhi NCR.

Max Estates has now announced that it has onboarded New York Life Insurance Company (New York Life), US based mutual life insurance company as an equity co-investor in a structure that already houses 2.66 acres of land on which Max Square is being developed. The addition of another approximately 4 acre of land, in the same SPV, will enable the development of approximately 6.6 acre of mixed use campus.

New York Life proposes to invest Rs 196 crore for a 49% equity stake. Max Estates will be responsible for the final delivery of the project and will be entitled to a development fee on the same.

The total development potential of the approximately 6.6 acre campus including the currently under construction Max Square (approximately 0.7 Mn square feet) is approximately 2 Mn square feet. 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.

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Commenting on the announcement, Sahil Vachani, MD & CEO of MaxVIL said, 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.

Max Ventures & Industries (MaxVIL), a part of the leading Indian multi-business conglomerate Max Group, owns and operates a real estate business through its 100% subsidiary, Max Estates. MaxVIL also has a real estate services & management company - Max Asset Services.

On a consolidated basis, net profit of MaxVIL declined 73.3% to Rs 6.29 crore on a 91.4% decrease in net sales to Rs 33.55 crore in Q1 FY23 over Q1 FY22.

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First Published: Sep 28 2022 | 10:27 AM IST

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