Biznextindia : Max Estates, the real estate subsidiary of USD 3 billion business conglomerate Max Group, has started construction of its new commercial project, comprising around 0.7 mn sq ft of office and retail spaces, on the Noida Expressway.
This is the 3rd commercial project of Max Estates, which is part of Max group’s listed entity Max Ventures & Industries Ltd (MaxVIL). Before this, the company had delivered two commercial real estate projects in the NCR; one is Max Towers, Noida and second is Max House, Okhla, Delhi.
Max Estates will develop the project ‘Max Square’ with New York Life Insurance Company as the financial partner. It will have 51 per cent and the New York Life Insurance Company will have 49 per cent stakes in the special purpose vehicle (SPV) Max Square Ltd, formed to develop the ‘Max Square’ project.
This is the first real estate project by New York Life Insurance Company in India as a financial partner. The project will be built at a cost of approximately 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 the 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.
“The success of our recent commercial real estate projects has enabled us to achieve financial closure for Max Square in a fairly quick period. We are thankful to have received all regulatory approvals in a timely manner despite constraints posed by the pandemic” Sahil Vachani, MD & CEO, Max Ventures & Industries, said.
The company expects the recent disruptions in office space demand to be a temporary phenomenon and thus expects good interest from reputed tenants for Grade A+ commercial office space including for Max Square.