Max Estates has entered into a Joint Development Agreement (JDA) with Namo realtech private ltd to develop a group housing project on Dwarka Expressway in Gurgaon, three people aware of the development said.
The land is next to Krisumi Waterfall Residences by Krisumi Corporation, a joint venture between Japanese conglomerate Sumitomo Corporation and Indian auto components major Krishna Group.
This project will be part of a separate SPV formed by Max Estates and Namo Realtech. Mohit Jain, director at Namo Realtech, is also the Managing Director of Krisumi Corporation.
“Max Estates will develop around 2.5 million sq ft on a 15-acre land parcel in sector 36A Gurgaon. The developer will make an upfront payment of Rs 75 crore and will get one third of the saleable area,” said one of the persons quoted above.
This will be Max Estates’ first residential project in Gurgaon while its first residential project in Noida is expected to be launched in the first half of 2023.
CBRE is the transaction advisor for the deal. Both Max Estates and CBRE did not respond to ET’s mailed query.
Recently, New York Life Insurance Co., a mutual life insurance firm based in the United States, had proposed to invest Rs 290 crore for a 49% equity stake in a commercial project in Gurgaon developed by Max Estates’ SPV, Acreage Builders Private Limited.
In September 2022, Max announced that it had started the process to acquire 100% equity in the SPV for Rs 322.50 crore.
On February 2 this year, it completed the acquisition and onboarded New York Life.
Both firms will have a 51:49 stake in the new SPV, which has a licence to develop a commercial property on 7.15 acres on Golf Course Extension Road in Gurugram.
This will be the company’s first commercial project in Gurgaon.
“With acquisitions this year (completed and in the pipeline), we will be ending FY 23 with a real estate portfolio of 7-8 million square feet diversified across the Delhi-NCR region, asset classes, and risk spectrum,” Sahil Vachani, MD & CEO of MaxVIL had said recently.
The company has planned to launch a residential project in Noida by the middle of CY 23.
“This will be a boutique development with a gross development value of Rs 1300 crore,” the company had said in a statement.
This mixed-use, residential led project will have an estimated saleable area of one million sq. ft.
The company has reported consolidated revenue of Rs 850 million in 9M FY23 up by 18% YoY.
Max Estates plans to acquire and develop 1 million square feet of premium residential and commercial office space each year.
In the last six months, the company completed three land transactions, acquiring around 22 acres for Rs 850 crore.
One of these lots will be used for residential development, while the rest will be used for commercial buildings.
Source : ET