Max Estates, the real estate subsidiary of Max Group, has commenced construction of its new commercial project, comprising around 0.7 million sq ft office and retail spaces, on the Noida Expressway, Uttar Pradesh.
This is the third commercial project of Max Estates, which is part of Max Group's listed entity Max Ventures & Industries (MaxVIL).
The company will develop the project Max Square with the New York Life Insurance Company as financial partner.
It will have 51 percent and the New York Life Insurance Company will have 49 per cent stakes in the special purpose vehicle (SPV) Max Square, formed to develop the project.
This is the first real estate project by the New York Life Insurance Company in India as financial partner.
The project will be built at a cost of around Rs 400 crore with an equity infusion of Rs 175 crore and a debt funding of Rs 225 crore.
Max Estates will be responsible for final delivery of the project. All statutory approvals including fire NOC, building plan approval, environmental clearance, mining approval, pollution approval (consent to establish) have been received.
The project construction has commenced and the company targets to deliver the same by March 2023.
Max Square has been conceptualised as an eco-friendly complex. It incorporates elements for the new normal including state-of-the-art air-filtration and contactless utilities.
Max Estate has so far delivered two commercial real estate projects in NCR; one is Max Towers, Noida and the second is Max House, Okhla, Delhi.
Total leasable area in Max Towers (owned directly + leasable rights for area owned by investors), Noida stands at around six lakh sq ft, of this 74 percent has been leased out so far. Out of the total area leased, around 74,000 sqft was recently leased to marquee corporates.
Phase-1 of the Max House, Okhla, comprising around 1,05,000 sq ft leasable area has been launched for leasing recently, while Phase-2 of the project of similar size to Phase-1 is targeted to start construction in Q4/FY21.
Besides real estate, MaxVIL is also into specialty packaging films.