New York Life Insurance invests Rs 388 cr to pick 49 pc stake in Max Estates' two office complexes

NEW DELHI: New York Life Insurance Company has invested Rs 388 crore to acquire a 49 per cent stake in two operational office complexes of Max Estates, a real estate firm of Max Group. Max Estates would use this fund mainly for expansion and growth.

In a regulatory filing, Max Estates announced a strategic investment of Rs 388 crore from New York Life Insurance Company, America's largest mutual life insurer.

"Upon the transaction's close, New York Life will acquire 49 per cent stakes in two SPVs (special purpose vehicles) of Max Estates that hold Max Towers and Max House (Phase I & II). Both are rent yielding operational commercial real estate projects located in Noida and Delhi, respectively," the company said.

Max Estates will hold 51 per cent in the two SPVs once the transactions are concluded.

New York Life owns a 22.67 per cent stake in Max Estates. That apart, it also owns a 49 per cent stakes in Max Estates' new commercial projects in Delhi-NCR.

It includes Max Square, which is already operational on Noida Expressway in Noida; and two under construction projects Max Square Two located adjacent to Max Square and a project located on main Golf Course Extension Road, Gurugram.

Max Estates said it would use a bulk of these funds to finance its expansion into the high-growth residential market and to capitalise on market opportunities.

"This strategic investment will further enable Max Estates to deliver on its aspired growth trajectory of acquiring at least 2 million square feet of development opportunity every year and redefine the future of residential and commercial real estate in the NCR," it added.

Sahil Vachani, VC & MD of Max Estates, said, the company's ever-growing partnership with New York Life Insurance is even stronger now.

"This collaboration further strengthens Max Estates' financial capacity to deliver world-class commercial and residential projects in Delhi-NCR and ensures a balanced approach to capital structure to fund company's growth trajectory," he said.

The deal signifies continued confidence from institutional investors in the growth potential of the company and its ability to unlock significant value for all stakeholders with right market-product combination in the real estate sector in India, Vachani said.

On the residential front, Max Estates launched and sold its first project in Noida last year, and its second project is to be launched in the first half of 2024 in Gurugram.