Max Estates To Strengthen Land Portfolio: Signed Joint Development Agreement

The real estate division of the Max Group, Max Estates Limited (Max Estates), announced in an exchange filing on May 02, 2024, that it had entered a legally binding agreement for a possible Group Housing Residential construction on 18.23 acres of land. The development area in Gurugram, which spans over 4 million square feet, has a Gross Development Value (GDV) of over ₹9,000 crore.

This piece of land is adjacent to the 11.80 acres of land that Max Estates already owned in sector 36 A, Gurugram, on the Dwarka Motorway, for which a Joint Development Agreement (JDA) was signed the previous year. With a re-evaluated GDV Potential of ₹4,000 Crore, the company is scheduled to open the first intergenerational residential community in the Delhi NCR in Q3 CY2024.

This aids Max Estates in solidifying its position (30 acres) in sector 36 A on the Dwarka Motorway, which has become a sought-after luxury residential area in Gurugram due to extensive infrastructure upgrades. By building and selling an area larger than 6.4 million square feet, both opportunities suggest a cumulative GDV potential in Gurugram over time of ₹13,000+ Crore.

Considering the regulatory nature of such transactions, the land deal is subject to the necessary regulatory approvals. Looking forward, the company is seeking to navigate the regulatory process efficiently and build out a near-to-midterm launch pipeline.

“We are delighted to secure this growth opportunity in a very prime residential vector in Delhi NCR within Gurugram. This is integral to our stated growth strategy of securing at least 2 mn square feet of development opportunity in Delhi NCR every year for Max Estates to emerge as a leading real estate brand anchored on its purpose of ‘Enhancing the Quality of Life through the Spaces it creates’, said Rishi Raj, COO of Max Estates Ltd.

He further added, “Post closure of this transaction, the portfolio of Max Estates will grow by 50% from 8 to 12 mn square feet of development potential, which is very well diversified in terms of asset classes (commercial office and residential), geographic footprint (Noida, Delhi and Gurugram) and risk spectrum (delivered and under construction).”

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