Max Estates, the real estate division of the Max Group, has revealed a significant investment of Rs 388 crore from New York Life Insurance Company. Upon the completion of the transaction, New York Life will secure a 49% ownership in two Special Purpose Vehicles (SPVs) operated by Max Estates, which hold Max Towers and Max House (Phase I & II). These projects are operational commercial real estate ventures generating rental income, situated in Noida and Delhi, respectively. Post-transaction, Max Estates will retain a 51% stake in the two SPVs.
The majority of these funds will be allocated by Max Estates towards expanding its presence in the rapidly growing residential market and seizing market opportunities. This strategic investment will empower Max Estates to pursue its envisioned growth trajectory, aiming to secure at least 2 million square feet of development opportunities annually, thereby reshaping the landscape of residential and commercial real estate in the National Capital Region (NCR). Max Estates views this latest strategic investment from New York Life as an affirmation of its capability to execute large-scale projects, ultimately enhancing the well-being of real estate in India.
New York Life owns 22.67% share in the listed entity – Max Estates. It also owns 49% stakes in Max Estates’ new commercial projects in Delhi-NCR. It includes Max Square, which is already operational on Noida Expressway in Noida; and two under construction projects Max Square Two located adjacent to Max Square and a project located on main Golf Course Extension Road, Gurugram.
Commenting on this development, Sahil Vachani, VC & MD, Max Estates said, “We are excited to announce that our ever-growing partnership with New York Life Insurance is even stronger now. This collaboration further strengthens Max Estates’ financial capacity to deliver world-class commercial and residential projects in Delhi-NCR and ensures a balanced approach to capital structure to fund the company’s growth trajectory. It signifies continued confidence from institutional investors in the growth potential of the company and its ability to unlock significant value for all stakeholders with right market-product combination in the real estate sector in India.’’
