Business conglomerate Max Group has completed its first commercial real estate project in Noida with an investment of Rs 600 crore and will earn an annual rental income of around Rs 70 crore from this prime office building.
Max Group, which has a major presence in life insurance, health and allied businesses as well as packaging sectors, entered the commercial real estate by taking up this stuck project two years ago from debt-ridden developer The 3C Company.
It has developed 'Max Towers' project in Noida, Uttar Pradesh, on nearly one acre located on the Delhi-Noida border. "This project is an example of our capability in real estate space of taking a distressed project two years ago and constructing a 6 lakh sq ft state-of-the-art building," Vachani said.
Asked about leasing status, he said: "We have got 30 per cent of the building pre-leased from MNCs (multinational corporations) and Indian entities."
Global flexible workspace operator IWG has taken on lease 50,000 sq ft office space for its premium brand 'Spaces'.
The company is expecting around Rs 100 per sq ft rental per month from this LEED platinum certified building, he said adding that discussions are undergoing to lease the remaining space.
"We took a calibrated risk when we chose a stressed asset to mark Max Group's presence as a serious real estate player," Vachani said.
A residential project at Dehradun comprising 22 super luxury villas with a price tag of Rs 4.5 crore each has already been completed. The Max Group has three holding companies -- Max Financial Services, Max India and MaxVIL.
MaxVIL's shares stood at Rs 46.40 apiece on the BSE on Friday.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)