Max Estates, the real estate arm of Max Group, has raised Rs 240 crore from Induslnd Bank for its upcoming commercial project on the NoidaExpressway, which will offer both office and retail spaces, a senior company executive said.
With this fund raise, the company has achieved financial closure of the Rs 415 crore project spread over 0.7 million sq ft, which it is developing with New York Life Insurance Co.
This is the third commercial project of Max Estates, which is part of Max Group’s listed entity, Max Ventures & Industries Ltd (MaxVIL).
New York Life Insurance Co will invest Rs 175 crorein the project.
Max Estates will own 51% in the special purpose vehicle, Max Square Ltd, formed to develop the project, while the remaining 49% will be held by New York Life Insurance Co.
“We are witnessing a lot of traction in the Noidamarket. We expect to complete the project by FY23,” said Nitin Kumar Kansal, chief financial officer at MaxVIL.
The company believes that the recent disruptions in office space demand are a temporary phenomenon and thus expects a good interest from reputed tenants for Grade A+ commercial office space, including for Max Square.
Max Estate has so far delivered two commercial real estate projects in the NCR—Max Towers in Noida and Max House in Okhla, Delhi.
MaxVIL, which operates across two businesses of real estate in the NCR and specialty packaging films, said it had leased 307,000 sq ft in Max Estates in FY21 against 142,000 sq ft in FY20.
Max Estates flagship office project, Max Towers, has reached more than 90% occupancy level.
The company’s focus now will be on leasing Max House in Okhla and smooth and time bound progress of its under construction commercial complex Max Square and commencement of work on phase-2 of Max House.
Max Estates also continues to actively prospect new commercial land parcels in Delhi-NCR, with a positive bias for Gurgaon to achieve its intent of adding nearly 1 million sq ft per annum to the project pipeline in FY22 and onwards.