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    Max group to announce first residential project by March 2022

    Synopsis

    The company has divested its remaining 51% shareholding in Max Speciality Films Ltd (MSFL), a subsidiary of MaxVIL, to Japan’s Toppan Inc. and the money will be used to acquire land parcels in Delhi-NCR. "We will do regular group housing, low rise and independent villas in the residential segment. We can also tie-up with our senior living arm," said Vachani.

    housingAgencies
    MaxVIL is in advanced talks with about a half-dozen landowners in Delhi-NCR to acquire and develop key land parcels.
    Max Estates Ltd, the real estate arm of Max Group, will announce its first residential project by March 2022 and will add one million sq ft of commercial and one million sq ft of residential space every year, Sahil Vachani, MD & CEO at Max Ventures & Industries Ltd (MaxVIL), told ET.

    The company has divested its remaining 51% shareholding in Max Speciality Films Ltd (MSFL), a subsidiary of MaxVIL, to Japan’s Toppan Inc. and the money will be used to acquire land parcels in Delhi-NCR.

    "We will do regular group housing, low rise and independent villas in the residential segment. We can also tie-up with our senior living arm," said Vachani.

    MaxVIL is in advanced talks with about a half-dozen landowners in Delhi-NCR to acquire and develop key land parcels.

    With several of them nearing completion, the corporation is likely to come up with new projects on a regular basis.

    Following the divestiture, the business will be able to build a war chest of over Rs 1,000 crore, which will be funded by sale proceeds, internal accruals, and prospective financial investor commitment. This will aid in the expansion of Delhi-NCR's residential and commercial real estate footprint.

    "We have enough funds to acquire land parcels in Delhi, Noida and Gurgaon, and now we can execute projects at multiple locations. At this point of time, we don’t want to look beyond NCR and want to be the leader in this market," Vachani said.

    The company will focus on the mid-segment to luxury housing. The company will also change its name from MaxVIL to Max Estates Ltd.

    "Backed by a successful track record of developments in the commercial space such as Max Towers and Max House, strength of differentiation in design, end-user experience, and the overall impeccable governance of the Max Group; MaxVIL is well-positioned to scale both its commercial and residential businesses, and deliver substantial value to all stakeholders," Vachani said.

    The company recorded consolidated revenues of Rs 378.3 crore, up 31% from the year-ago period. The consolidated EBITDA rose 20% from the corresponding year-ago period to Rs 62.7 crore.

    "We have already demonstrated execution capabilities and have the track record of delivering grade A assets. NCR provides a great opportunity and there is an opportunity to offer something, which the real estate industry has never seen," said Vachani.

    The company's Max Towers is 93% rented while Max House is 60% rented, with a 20-25% rental premium in the micro-market. This financial year, the company aims to lease both assets entirely.

    Toppan would also be taking over the debt of MSFL as part of the deal. After acquisition of 49% stake in 2017 for about Rs 200 crore, Toppan became a strategic partner of MaxVIL.

    "The decision to divest our residual 51% stake in specialty packaging business to the existing partner is to generate additional growth capital to deploy in the real estate business that offers tremendous growth opportunities," said Vachani.


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