Max Estates buys 85-acre land in Delhi to build projects, eyes Rs 10,000-12,000 cr revenue
Max Estates has successfully acquired 84.71 acres in West Delhi for a whopping Rs 420 crore. This bold move paves the way for future residential and commercial projects, estimated to yield between Rs 10,000 and Rs 12,000 crore in revenue. By enter...
By PTI |
Agencies
Realty firm Max Estates Ltd has acquired 84.71 acre land in West Delhi from promoters' land holding entities, in a share-swap deal worth Rs 420 crore, as part of its expansion plan.
The company will develop residential and commercial projects on this land parcel and expects revenue of Rs 10,000-12,000 crore from upcoming projects on the site.
With this acquisition, Max Estates said it has entered into Delhi's housing market. It is already doing residential projects in Gurugram and Noida markets of Delhi-NCR.
In a regulatory filing on Saturday, the company said it has entered into a share purchase agreement to acquire 100 per cent stakes in nine promoter-owned land-holding companies, which together own 84.71 acre land parcel.
The acquisition is structured as non-cash share swap transaction.
Max Estates will pay consideration through the issue of equity shares.
As per the deal, Max Estates will allot about 70 lakh equity shares at an issue price of Rs 597.50 per share, aggregating up to Rs 420.2 crore, to the identified allottees.
The nine land owning companies would becomes a wholly-owned subsidiary of Max Estates.
On the rationale for acquisition, Max Estates said it currently has a strong residential launch pipeline with a total revenue potential of Rs 16,150 crore.
"The company is targeting for next phase of growth in presales and pipeline, a trajectory that requires continuous replenishment of developable land...," the company said.
Max Estates is planning an integrated, mixed-format development -- residential, retail, social and community infrastructure.
The company is expecting 4-6 million sq ft of developable area from 85 acre land parcel and a revenue potential of Rs 10,000-12,000 crore, the filing said.
The transaction increases the company's land bank and future revenue pipeline without any release of cash.
Sahil Vachani, Vice Chairman & Managing Director, Max Estates, said, "This is a landmark transaction for Max Estates. It gives us our first foothold in Delhi -- the one core NCR market we did not yet have a presence in -- at a fraction of prevailing land values elsewhere in the region, and without deploying a rupee of cash."
The land parcel are located at the heart of Delhi's westward urban expansion under Master Plan 2047, with strong land-pooling momentum and improving connectivity via UER-II, Dwarka and IGI Airport, he added.
"At this scale, the parcel gives us a multi-year, phase-able pipeline that directly addresses the land-bank visibility, while remaining significantly accretive for all our shareholders," Vachani said.
Max Estates is one of the leading real estate developers in the country.
The company will develop residential and commercial projects on this land parcel and expects revenue of Rs 10,000-12,000 crore from upcoming projects on the site.
With this acquisition, Max Estates said it has entered into Delhi's housing market. It is already doing residential projects in Gurugram and Noida markets of Delhi-NCR.
In a regulatory filing on Saturday, the company said it has entered into a share purchase agreement to acquire 100 per cent stakes in nine promoter-owned land-holding companies, which together own 84.71 acre land parcel.
The acquisition is structured as non-cash share swap transaction.
Max Estates will pay consideration through the issue of equity shares.
ADVERTISEMENT
As per the deal, Max Estates will allot about 70 lakh equity shares at an issue price of Rs 597.50 per share, aggregating up to Rs 420.2 crore, to the identified allottees.
The nine land owning companies would becomes a wholly-owned subsidiary of Max Estates.
On the rationale for acquisition, Max Estates said it currently has a strong residential launch pipeline with a total revenue potential of Rs 16,150 crore.
"The company is targeting for next phase of growth in presales and pipeline, a trajectory that requires continuous replenishment of developable land...," the company said.
ADVERTISEMENT
Max Estates is planning an integrated, mixed-format development -- residential, retail, social and community infrastructure.
The company is expecting 4-6 million sq ft of developable area from 85 acre land parcel and a revenue potential of Rs 10,000-12,000 crore, the filing said.
ADVERTISEMENT
The transaction increases the company's land bank and future revenue pipeline without any release of cash.
Sahil Vachani, Vice Chairman & Managing Director, Max Estates, said, "This is a landmark transaction for Max Estates. It gives us our first foothold in Delhi -- the one core NCR market we did not yet have a presence in -- at a fraction of prevailing land values elsewhere in the region, and without deploying a rupee of cash."
The land parcel are located at the heart of Delhi's westward urban expansion under Master Plan 2047, with strong land-pooling momentum and improving connectivity via UER-II, Dwarka and IGI Airport, he added.
"At this scale, the parcel gives us a multi-year, phase-able pipeline that directly addresses the land-bank visibility, while remaining significantly accretive for all our shareholders," Vachani said.
Max Estates is one of the leading real estate developers in the country.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
