MaxVIL plans to expand the real estate sector; looking to add at least 2 projects in FY22


Bullish in the Indian real estate market, group company Max Max Ventures and Industries Ltd (MaxVIL) is seeking to acquire at least two plots of land, directly or through joint ventures, in Delhi-NCR this fiscal year to expand its office portfolio. and enter the residential segment.

MaxVIL, which is active in the real estate and packaging film industries, is publicly traded and posted total income of almost Rs 1,190 crore in the last fiscal year.

In an interview with PTI, MaxVIL MD and CEO Sahil Vachani described the company’s future plan in real estate to develop at least one million square feet each in the commercial and residential segment from 2025.

He pointed out that the first office building of the company “Max Towers” in Noida, comprising about 6 lakh square feet, has been almost fully leased, while the second office building “Max House” – having a leasable area of ​​1 lakh square feet – in Okhla in the national capital would hopefully be fully leased by December.

Construction work on the second phase of the similar-sized Okhla project and the new “Max Square” office complex, comprising seven lakh square feet of leasable space, on Noida Expressway is progressing well.

The Max Square building is being developed as part of a joint venture with New York Life Insurance Company, which has a 49% stake in the project.

“We also announced a residential foray. Our idea is to focus on the Delhi-NCR market. We will be in multiple asset classes commercial, office, residential – in all micro markets of NCR Delhi, Gurugram and Noida “said Vachani. .

The company will continue to focus on end users, not investors, throughout its future development.

“Starting in 2025, we plan to develop 1 million commercial square feet and 1 million residential square feet each year,” he said.

To develop its activities, the company seeks to acquire new projects, both through new routes and brownfields.

“At any given time, we are evaluating 10 to 12 opportunities. We have complete machines for this. We are always looking for opportunities, whether it is a green field, a joint venture, a joint development agreement (JDA), ”he said.

Vachani expects the company to launch its first project in the residential segment during the current fiscal year, in Noida or Gurugram.

The company would target the high-end housing segment in a price range of Rs 2 to 5 crore and not ultra-luxury.

In addition to a proposed foray into the housing segment, MaxVIL plans to expand its office portfolio and is looking to add projects to the NCR market.

“We are looking for an office project in Gurugram and Noida. This could be done through outright purchase or a joint venture,” he said.

Additionally, Vachani said the company bid on a stalled project for real estate group The 3C Company in Noida and near its Max Towers project.

“The good news is that the CoC (Creditors Committee) approved our offer at 95.6%. So we have already won at the CoC level. We are awaiting the approval of the NCLT (National Company Law Tribunal)”, a- he declared.

The project has a total area of ​​30 lakh square feet, of which 10 lakh square feet are office space, 5 lakh square feet retail, 12-13 lakh square feet serviced apartments and a small portion of hotels. “We have a great opportunity,” he added.

Elaborating on the existing portfolio, Vachani said the Max Towers in Noida, its first commercial project, are now about 97 percent occupied.

“Validation for us is not just the occupation, but we have been able to get a premium in the micro-market. The premium is around 30% on the micro-market. It is a validation of our brand, our ability to execute and our unique purpose. on the purely customer experience, ”he said.

The second Max House commercial project in Okhla is 20 percent occupied and is expected to be fully let by the end of this year.

Rental income, after full rental of both buildings, will be around Rs 60 crore per year.

“The main focus for us is the customer experience. We don’t see ourselves just as a builder of real estate infrastructure. We see ourselves as an experienced provider. The experience you get in our building, you don’t. ‘Maybe you’ll get it nowhere else, “he said.

The emphasis is on health, wellness, convenience and convenience across its portfolio.

“We have found that the focus on the customer experience leads to superior results.”

Speaking about the changes in the office market during the COVID pandemic, Vachani said: “There was a change after Covid… It was also before Covid, but afterwards the focus is on well-being, health and hygiene. “

“What we are seeing is that since the pandemic, the intention of companies is to move towards more quality office spaces that promote creativity and innovation,” he said.

MaxVIL, which is part of India’s leading multi-business conglomerate Max Group, owns and operates a real estate business through its wholly-owned subsidiary Max Estates.

Max Specialty Films is a 51:49 strategic partnership with Toppan, Japan. It is a leading manufacturer of Biaxially Oriented Polypropylene (BOPP) films, including packaging, labeling, coating and thermal lamination films, with a total capacity of 72 kilotons per year (KTPA ).

MaxVIL also owns a real estate management and services company “Max Asset Services” and an investment subsidiary, Max I, which supports entrepreneurial real estate companies.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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