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Max Estates, a real estate development company, has entered into a joint development agreement (JDA) with Namo Realtech Private Ltd to develop a group housing project on Dwarka Expressway in Gurgaon, India. The land is located next to the Krisumi Waterfall Residences by Krisumi Corporation, a joint venture between Japanese conglomerate Sumitomo Corporation and Indian auto components major Krishna Group.
The project will be part of a separate special purpose vehicle (SPV) formed by Max Estates and Namo Realtech. Mohit Jain, director at Namo Realtech and managing director of Krisumi Corporation, said that "sector 36A is poised to be the best real-estate destination owing to its location being connected with the three most prominent highways of NCR. Max and Krisumi will together develop this location as the most prominent one in Gurugram."
Max Estates will develop approximately 2.5 million square feet on an 11.8-acre land parcel in sector 36A Gurgaon. The company will make an upfront payment of ?75 crore and receive one-third of the saleable area. The company expects revenue of ?3,200 crore from the project.
Sahil Vachani, managing director and CEO of Max Ventures & Industries Limited, said, "FY2023 has been a defining year for the company's real estate business in its growth journey. With this acquisition, we will be ending FY2023 with a real estate portfolio of 8 million square feet, which is well diversified in terms of geographical footprint across Delhi, Noida and Gurugram, as well as between residential and commercial assets."
This will be Max Estates' first residential project in Gurgaon, while its first residential project in Noida is expected to be launched in the first half of 2023. CBRE is the transaction advisor for the deal.
In a separate deal, New York Life Insurance Co., a mutual life insurance firm based in the United States, proposed to invest ?290 crore for a 49% equity stake in a commercial project in Gurgaon developed by Max Estates' SPV, Acreage Builders Private Limited. In September 2022, Max announced that it had started the process to acquire 100% equity in the SPV for ?322.50 crore. On February 2, 2023, it completed the acquisition and onboarded New York Life. Both firms will have a 51:49 stake in the new SPV, which has a license to develop a commercial property on 7.15 acres on Golf Course Extension Road in Gurugram.
Max Estates' real estate portfolio includes a mix of residential and commercial projects across Delhi, Noida, and Gurugram. With the addition of this new project on Dwarka Expressway, the company will strengthen its presence in the NCR region. The company's strong partnerships with reputed firms like Namo Realtech and Krisumi Corporation, and the recent investment by New York Life Insurance Co. demonstrate the company's commitment to building high-quality projects and delivering value to its stakeholders.
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