This real estate stock has zoomed 28% in two days, hits 52-week high

Shares of the real estate development arm of Max Group, Max Estates have rallied 28.4 per cent in the last two trading sessions, reaching its 52-week high at Rs 375 on the BSE in Friday's intraday

Shares of the real estate development arm of Max Group, Max Estates have rallied 28.4 per cent in the last two trading sessions, reaching its 52-week high at Rs 375 a piece on the BSE in Friday’s intraday deals. On Friday, the real estate firm rallied 7.1 per cent from Thursday’s close of Rs 350 per share. 

The upswing in stock price comes amidst deal wins by the company, on Thursday Max Estates, through its subsidiary, Max Estates Gurgaon Two, signed an agreement for residential development opportunity in Gurugram with gross development value potential of over Rs 9,000 crore. The residential property will occupy 18.23 acres of land at the back of 4 million square feet of development area.

 

The company said that 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 signed 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 Rs 4,000 crore. This helps Max Estates consolidate its position (30 acres) in sector 36 A on Dwarka Expressway. Both opportunities imply a combined GDV potential over time of Rs 13,000 crore in Gurugram by developing and selling an area over 6.4 million square feet, the management said. 

On Wednesday, Max Estates informed the exchanges about a strategic investment of Rs 388 crore from New York Life Insurance company, upon the transaction’s close, New York Life will acquire 49 per cent stakes in two SPVs of Max Estates that hold Max Towers and Max House (Phase I & II). 

Both are rent yielding operational commercial real estate projects located in Noida and Delhi, respectively.  Max Estates will hold 51 per cent in the two SPVs after the transactions are concluded. 

Max Estates will use a bulk of these funds to finance its expansion into the high - growth residential market and to capitalise on market opportunities, the company said in press statement.  

New York Life owns 22.67 per cent share in the listed entity - Max Estates, it also owns 49 per cent stakes in Max Estates’ new commercial projects in Delhi-NCR including Max Square, which is already operational on Noida Expressway in Noida; and two under construction projects Max Square Two located adjacent to Max Square and a project located on main Golf Course Extension Road, Gurugram.

At 10:00 AM, the stock price of the company soared 4.25 per cent at Rs 365.50 a piece on the BSE. In comparison the S&P BSE was trading 0.51 per cent higher at 74,991 levels.