Max Estates buys 7.5-acre Gurugram land to build project worth ₹3,000 crore

Don't want to miss the best from Business Standard?

Max Estates Ltd has acquired a 7.25-acre land in Gurugram to develop a housing project with an estimated revenue of Rs 3,000 crore, as the company intends to expand business amid strong demand.

In a regulatory filing on Saturday, the company informed that the board has approved acquisition of Base Buildwell Private Limited (BBPL).

Base Buildwell is a special purpose vehicle holding licence and development rights over the 7.25-acre land parcel located at Sector 59, Golf Course Extension Road in Gurugram.

"The outlay associated towards the transaction is expected to be around Rs 534 crore, comprising the acquisition of 100 per cent of the share capital of BBPL on a fully diluted basis comprising 10,000 equity shares of Rs 10 each and 24,17,256 compulsorily convertible debentures of Rs 100 each, and project-level payments toward security deposit, purchase of Transferable Development Rights, and related approvals," the company said.

The estimated development potential on this land is 1.3 million square feet, while sales booking value would be more than Rs 3,000 crore.

"The acquisition aligns with the company's premium residential strategy in Delhi-NCR," Max Estates said.

Upon completion of this transaction, BBPL will become a wholly-owned subsidiary of the company. Max Estates is one of the leading real estate companies in the country. It has a presence in Delhi-NCR. The company is developing housing and office complexes.