Max Estates Ltd., the real estate vertical of Max Venture & Industries Ltd., is planning to invest about Rs 1,500 cr over the next three years to build a portfolio of office spaces.
The company is completing its first project of 5 lakh sqft known as Max Tower in Delhi One, a commercial and residential property in Sector 16 of Noida. It is redeveloping Max India’s headquarters in the Okhla region into 1lakh sqft of office space.
It has already raised about Rs 770 cr through equity, and is looking to borrow an equivalent amount over three years. Of the Rs 770 cr raised by Max Estates, about Rs 450 cr was from a share sale to existing investors, Rs 200 cr from divesting a 49% stake in the packaging business and another Rs 120 cr from New York Life.
The developer is in advanced talks to buy an additional 6,000 square metres of land in Delhi One from 3C, a Noida-based real estate developer, to build an office-cum-commercial complex. The land is expected to be valued at about Rs 250-300 cr.
The land was originally earmarked for a luxury hotel, for which the developer had tied up with Four Seasons Hotels & Resorts based in Toronto. If the deal is finalised, the entire amount will be paid to the Noida authority and lenders, which are owed about Rs 300 cr by 3C.
Max is scouting for opportunities in the National Capital Region. It took over the construction of the stalled Max Tower in May 2016, when the project was only at ground level. The project is almost completed and delivery is expected to start by December. The company has already rented out about one-fifth of the space for an estimated Rs 60 cr per annum.
The company plans to monetise the rental income either through a real estate investment trust or a portfolio of let-out office buildings.