May 2, 2024: Max Estates, the real estate arm of the Max Group, on May 1, 2024, announced a strategic investment of Rs 388 crore from New York Life Insurance Company, an America-based mutual life insurer. Upon the transaction’s close, New York Life will acquire 49% stakes in two SPVs of Max Estates that hold Max Towers and Max House (Phase I and II). Both are rent yielding operational commercial real estate projects located in Noida and Delhi, respectively. Max Estates will hold 51 % 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. This strategic investment will further enable Max Estates to deliver on its aspired growth trajectory of acquiring at least 2 million square foot (msf) of development opportunity every year.
New York Life owns 22.67% share in the listed entity – Max Estates. It also owns 49% stakes in Max Estates’ new commercial projects in Delhi-NCR. It includes 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, Gurgaon.
Sahil Vachani, VC and MD of Max Estates said, “This collaboration further strengthens Max Estates’ financial capacity to deliver world-class commercial and residential projects in Delhi-NCR and ensures a balanced approach to capital structure to fund the company’s growth trajectory. It signifies continued confidence from institutional investors in the growth potential of the company and its ability to unlock significant value for all stakeholders with right market-product combination in the real estate sector in India.’’
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