The real estate arm of Max Group has managed to secure ₹415 crore for the construction of its upcoming commercial project on the Noida Expressway offering office and retail spaces. It has raised ₹240 crore from Induslnd Bank and with this, it has achieved financial closure of ₹415 crore project spreading over 0.7 million sq ft, which it is developing with New York Life Insurance Co. The newest is the third commercial project of Max Estates, which is a part of Max Group's listed entity, Max Ventures & Industries Ltd (MaxVIL). New York Life Insurance Co will invest ₹175 crore in the project and Max Estates will own 51% in the special purpose vehicle and Max Square Ltd, formed to develop the project, while the remaining 49% will be held by New York Life Insurance Co.
Nitin Kumar Kansal, chief financial officer at MaxVIL informed that the company is witnessing a lot of traction in the Noida realty market and it is expected to complete the project by FY23. 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 realty 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 speciality packaging films. The company 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 and its focus now will be on leasing Max House in Okhla. It will ensure smooth and time-bound progress of its under-construction commercial complex Max Square and commencement of work on phase-2 of Max House.