Max Group to Expand Realty Business in FY22
Bullish on the Indian real estate market, Max group firm Max Ventures and Industries Ltd (MaxVIL) is looking to acquire at least two land parcels, outright or through joint ventures, in Delhi-NCR this fiscal year to expand its office portfolio and enter into the residential segment. MaxVIL, which
Published -
Oct 17, 2021 6:45 PM
Bullish on the Indian real estate market, Max group firm Max Ventures and Industries Ltd (MaxVIL) is looking to acquire at least two land parcels, outright or through joint ventures, in Delhi-NCR this fiscal year to expand its office portfolio and enter into the residential segment. MaxVIL, which has a presence in real estate and packaging film businesses, is listed on stock exchanges and posted a total income of nearly Rs 1,190 crore during the last fiscal year. MaxVIL MD and CEO Sahil Vachani plans to develop at least a million square feet each in both commercial and residential segments from 2025 onwards. He highlighted that the company's first office building 'Max Towers' in Noida, comprising around 6 lakh square feet, has been almost fully leased, while the second office building 'Max House' - having 1 lakh square feet leasable area - at Okhla in the national capital would get fully leased hopefully by December. The construction works for the second phase at Okhla project of similar size as well as the new office complex 'Max Square', comprising seven lakh square feet of leasable area, on Noida Expressway are progressing well. The Max Square building is being developed through a joint venture with New York Life Insurance Company, which has a 49 percent stake in the project. ''We have also announced a residential foray. “Our idea is to be focused on the Delhi-NCR market. We will be in multiple asset classes – commercial, office, residential - in all the micro-markets of NCR – Delhi, Gurugram, and Noida. The company will continue to focus on end-users and not investors in all its future development. ''From 2025, we plan to develop 1 million square feet commercial and 1 million square feet residential every year. To expand the business, the company is looking to acquire new projects -- through both greenfield and brownfield routes. 'At any given time, we evaluate 10-12 opportunities. We have full machinery for it. We always look for opportunities, be it greenfield, joint venture, Joint Development Agreement (JDA),'' Vachani said. Vachani expects the company to launch its first project in the residential segment during the current fiscal, in Noida or Gurugram. The company would target the premium housing segment in a price bracket of Rs 2-5 crore and not ultra-luxury. Apart from the proposed foray into the housing segment, MaxVIL plans to expand its office portfolio and is looking to add projects in the NCR market. ''We are looking for one office project in Gurugram and Noida. This could be via outright purchase or joint venture,'' he said. Moreover, the company has bid for a stalled project of realty group The 3C Company in Noida and proximity of its Max Towers project. 'The CoC (Committee of Creditors) has approved the bid by 95.6 percent. The project has a total 30 lakh square feet area, of which 10 lakh square feet is an office, 5 lakh square feet retail, 12-13 lakh square feet of a serviced apartment, and a small component of hotels. ''We have a great opportunity,'' he added. The second commercial project Max House at Okhla is 20 percent occupied and is expected to be fully leased by the end of this year. The rental income, after the entire leasing of both the buildings, will be about Rs 60 crore annually. MaxVIL, a part of the leading Indian multi-business conglomerate Max Group, owns and operates a real estate business through its 100 percent subsidiary Max Estates.Max Speciality Films is a 51:49 strategic partnership with Toppan, Japan. It is one of the leading manufacturers of Biaxially Oriented Polypropylene (BOPP) films including specialty packaging, labels, coating, and thermal lamination films, with a total capacity of 72-kilo tonnes per annum (KTPA). MaxVIL also has a real estate services and management company 'Max Asset Services' and an investment subsidiary, Max I, which supports real estate entrepreneurial ventures.
Tags : News/Views Delhi-NCR Max Group Land Parcels MaxVIL Noida Expressway Realty Business Max Ventures and Industries Ltd Sahil Vachani Joint Development Agreement