Max Ventures and Industries rose 1.13% to Rs 40.30 after the company's real estate subsidiary, Max Estates, started construction of its new commercial project on the Noida Expressway.
The project 'Max Square' comprises around 0.7 million square feet of office and retail spaces. Max Estates will develop the project with New York Life Insurance Company as the financial partner. It will have 51% and the New York Life Insurance Company will have 49% stakes in the special purpose vehicle (SPV) Max Square, formed to develop the 'Max Square' project.
The project will be built at a cost of approximately Rs 400 crore with an equity infusion of Rs 175 crore and a debt funding of Rs 225 crore. Max Estates will be responsible for the final delivery of the project. The project construction has commenced and the company targets to deliver the same by March 2023.
The company expects the recent disruptions in office space demand to be a temporary phenomenon and thus expects good interest from reputed tenants for Grade A+ commercial office space including for Max Square.
Max Estate has so far delivered two commercial real estate projects in NCR; one is Max Towers, Noida and second is Max House, Okhla, Delhi.
Max Ventures & Industries (MaxVIL), a part of the leading Indian multi-business conglomerate Max Group, owns and operates a real estate business through its 100% subsidiary, Max Estates, and a packaging films business through Max Speciality Films, a 51:49 strategic partnership with Toppan, Japan. MaxVIL also has a real estate services & management company - Max Asset Services and an investment subsidiary, Max I., which supports real estate entrepreneurial ventures.
On a consolidated basis, the company reported a net loss of Rs 11.49 crore in Q2 FY21 as against a net profit of Rs 8.31 crore in Q2 FY20. Total income during the quarter dropped 32.9% YoY to Rs 293.69 crore.
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