Max Estates Ltd: New York Life Insurance Invests ₹388 Cr, Will Acquire 49% Stake | Rishi Raj

Welcome on board Rishi Raj, the CEO at Max X states. It’s a very interesting deal that they’ve struck and let’s try and understand a little bit more about that. Rishi. Hi. Morning. Tell us a little bit more about this deal wherein NYL has subscribed fresh shares and has acquired a stake of existing shares as well within two of your projects, what are the contours of this deal given that you guys have had a very long standing relationship? Good morning. It’s great to be on your show. We are really, really excited about two very important development which has happened over last week. One what you are talking about which is New York Life which has been our long standing partner in real estate. They will be investing 49% stake in two of our subsidiaries which houses two of our rent yielding operating asset namely Max Towers and Max House. Max Towers which is in Noida, our flagship commercial office asset and Max House which is in South Delhi in Okhla. Through these 49% investment, they will be in total investing approximately INR 400 billion. And it is of significant importance for three reasons #1. It really reaffirms New York life’s belief and confidence in India’s macro story and more so in India’s real estate story which is going very strong. And it also reaffirms their confidence in Max’s states as a partner to unlock significant value moving forward in real estate second and third very quickly. It also demonstrates Max’s State’s ability to go through the full monetization cycle in commercial office space from acquisition to sale at A at A at an unlock significant value for shareholders. And finally and very importantly, this also provides us for growth capital which will be recycled in accelerating our growth in the residential space. As for the guidance, we have already given to the market which is to acquire almost 2 to 3,000,000 square foot of development potential every year. So in that context, very, very excited about this development at what yield has the deal with Max New York live gone through because this is a commercial deal. So I’m sure there would be a basic benchmark in terms of yield. What is that number? So Nikunj, if you look at, if you look at the rentals for one year forward-looking rentals or NOI, if I have to be very precise, it’s around 95 crores. And if you translate that into enterprise value, which translates into this equity stake of 400 billion, this will be around very attractive yield of 7.5%. The next deal what you’ve done is that you’ve acquired a land parcel for joint development. This is a residential land parcel in Gurgaon. Is this an extension of your existing land parcel or this is a new land parcel? So this is a new land parcel and I’ll just take a minute to explain to your audience. If you look at our residential story after successful launch in Noida of Estate 128 in July of last year, we will be launching our second residential and 1st in Gurgaon in July of this year. That is Nikunj 11.8 acres joint development that we did announced last year. The great news is that this deal that we have announced is for 18.2 acre which is contiguous to the existing land parcel. So in total in that sector 36A which is on prime Dorka Expressway which is fast emerging as premium luxury residential destination given its locational advantage and connectivity to airport Delhi and all parts of Gurgaon. This, this, this will be a new and this the, the, the good news is this will give us a launch pipeline for 2025 and 2026 given the potential of 4,000,000 square foot that this once this transaction is fully consummated it will bring to the table for us. OK Rishi, great to have you on the show. Thanks so much for joining in with that explanation. As to what’s going on. Max Estates by the way holding up over 4% as we speak, nifty two at an all time high. If you like this video then like, share and subscribe to 80 Now.