Construction Industry News
Max Estates has recently finalized binding agreements for a potential group housing residential development spanning 18.23 acres of land, with an estimated gross development value (GDV) exceeding Rs 9,000 crore in Gurugram. This development is set against a backdrop of approximately 4 million sq-ft of development area.
Situated adjacent to its existing 11.80 acres of land on Dwarka Expressway in sector 36 A, Gurugram, where Max Estates entered into a Joint Development Agreement (JDA) last year, this new land parcel marks a significant expansion. The company remains on schedule to introduce Delhi NCR’s inaugural Intergenerational residential community in Q3 of CY 2024, with the GDV Potential now re-evaluated at Rs 4,000 Crore.
This helps Max Estates consolidate its position (~30 acres) in sector 36 A on Dwarka Expressway, which with massive infrastructure upgrade has emerged as a prime luxury residential destination in Gurugram. Both opportunities imply a combined GDV potential over time of Rs 13,000+ crore in Gurugram by developing and selling an area over 6.4 mn sq-ft.
The location stands tall as the perfect hub for premium residential projects within Gurugram owing to its vicinity to the planned Global City as well as having seamless connectivity to the International airport, different parts of Delhi as well as key commercial and residential hubs within Gurugram. With both acquisitions through the joint development route, Max Estates has demonstrated tremendous success in expanding through relatively light capital deployment strategies.
Expressing enthusiasm about the recent transaction, Rishi Raj, COO, Max Estates said, “We are delighted to secure this growth pportunity 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’.
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)”
The binding agreement envisages securing development opportunity through JDAs over three tranches and undergoing the process of securing license under Transit Orient Development (TOD) policy in collaboration with the landowner. Given the regulatory nature of such transactions, Max Estates advises that the developments are subject to the necessary regulatory approvals. The company looks forward to navigating through the regulatory process efficiently and building out near to midterm launch pipeline.
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