Torbit Company Update

Max Estates Ltd. On Road to Focused Real Estate Growth in Delhi- NCR

Riding high on its strong performance, Max Ventures & Industries Limited (MaxVIL), one of the three holding companies of the USD 4.5 billion Max Group and the holding company for the Max Group’s real estate business, Max Estates is on a high growth path, building a well-diversified commercial and residential real estate portfolio across Delhi-NCR.

The FY 23 performance of MaxVIL points to the healthy growth path being chartered by the group.??Revenue increased by 6% YoY to INR 1,073 million in FY23.?Consolidated PBT was up by 418% YoY to INR 221 million in FY23 while the onsolidated PAT stood at INR 170 million in FY23 vs. INR 47 million in FY22. The total Lease Rental Income (Max Towers + Max House) went up by 30% YoY to INR 483 million in FY23. Max Asset Services revenue stood at INR 358 million in FY23, up by 50% YoY.

Strong Leasing Momentum

Max Estates’ completed Grade A+ office projects – Max Towers and Phase 1 of Max House are 100% leased at 25-30% premium to the micro market. The collections continue to be on time and in full. The premium earned is in line the organisation’s Workwell philosophy, which ensures holistic wellbeing of its users, enabled by a unique ecosystem of spaces including F&B and several amenities, as well as acceptance and appreciation of its impeccable service standards and design led sustainable developments.

The total leased area owned by Max Estates in Max Towers Noida continues to be 100% occupied.???????Lease rental income from Max Towers stood at INR 340 million in FY23. Max House Okhli, New Delhi, Phase 1 continues to be 100% occupied.??Lease rental income from Max House Phase 1 stood at INR 143 million in FY23. Max Square Noida project received its Completion Certificate in February 2023, in a short span of 30 months. The development has obtained the highest green building standards certification from IGBC, and is IGBC Platinum certified under the Green New Buildings Rating System. Total leasable area amounts to 0.7 million sq. ft and New York Life Insurance Company is a 49% partner in the project. The Company has built a robust pipeline at advance stages of closure with several clients and is confident to fully lease the project within 12-18 months of completion.

The work on Max House Phase 2, Okhla, New Delhi is on track and is expected to be completed by Q2FY24. Max House Phase 2 is an extension of Max House Phase 1, with a larger leasable area of 0.15 million sq ft. The company which is getting good traction in terms of the demand from both existing and new clients is confident to fully lease the project within 12 months of completion, including significant proportion to be pre-leased.

Upcoming Projects?

Residential Developments

Maxwell Estates Limited has signed a joint development agreement (JDA) for its its upcoming residential project in Sector 36A, Gurugram with a development potential of 2.4 million sq ft, having a gross development value of INR 3200 crores.?The land parcel admeasures 11.8 acres with direct access from the Dwarka Expressway. The site is also strategically located at the confluence of the expressway, Central Peripheral Road (CPR) and planned Metro Corridor, by virtue of which, this site has excellent connectivity to central and secondary business districts of Gurugram such as Cyber City, Golf Course Road, and Southern Peripheral Road (SPR). The project will develop into one of region’s first intergenerational community at scale. The company estimates to launch the project in first half of CY 2024.

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https://www.torbitconsulting.com/max-estates-on-road-to-focused-real-estate-growth-in-delhi-ncr/