NCR-based Max Estates, a subsidiary of Max Ventures and Industries Limited (MaxVIL) in seven years of its inception, has come a long way in establishing itself as a preferred premier real estate brand . Starting with 222 Rajpur, a boutique residential development of luxury villas in Dehradun, it has already developed 3 commercial projects- Max Towers and Max Squares in Noida and Max House in Delhi. Today , Max Estates has a creditable portfolio of 80 lakh sq ft of completed, ongoing and upcoming projects including 45 lakh sq ft of commercial and 35 lakh sq ft of residential development.
In a free and frank talk , Sahil Vachani, Managing Director and CEO, MaxVIL provides rich insights into successful development strategy of the company, its brand strength, focus on green developments and company’s expansion plans. Excerpts Vinod Behl
Today in a short span of few years, Max Estates has made a mark as a well respected and most desired real estate brand. What sets you apart as a brand ?
For us the most critical differentiating factor is sustainable development. Our mantra is -work well , live well. And for that we incorporate several elements like air, water, light, nature in our buildings , from design to asset management for the health and overall wellness of occupiers. We diligently focus on sustainability . From design to operations across the value chain, we partner with proptech companies to make our buildings energy efficient in order to control common area maintenance charges.
We have redefined office space with a customer-centric approach. Our focus is on pure play sustainable business. It is clearly evident from the top green ratings of our buildings. Max Square 129 Noida has been pre-certified as Platinum Green by IGBC for wellness and zero water discharge. We do not follow an investor-centric approach because we believe that land arbitrage is not value addition, rather it is design and customer-centric approach which adds value. Because of our customer-centric approach in green developments, occupiers prefer to lease our office spaces even at a premium. Max Square 129 Noida is today fetching us a high rental of Rs 130 psf.
What is your group’s development strategy?
As part of our development strategy, we want to operate in premium and selectively in luxury segments with a mix of residential and commercial developments. We do not want to get into the affordable housing segment because it is tough to make money in it . Simply because the selling price is fixed whereas the cost of inputs is constantly rising putting a lot of pressure on developers’ margins.Especially as we do not cut corners.
We have adopted a calibrated development approach . We will be developing a million sq ft of residential and a million sq ft of commercial real estate every year. We can expand geographically to more markets but we want to restrict ourselves to Gurgaon and Noida markets in Delhi-NCR.It is because of our calibrated approach that we are able to create a good real estate portfolio from the point of view of geographical spread, mix of commercial and residential developments and risk profile.
There is a big demand for senior living. Where does this asset class fits into your overall development scheme ?
In India, we have a 250 million strong seniors market. There is a huge demand for quality senior living developments but the supply is simply not there. So, there is a big scope in this segment. As operators of senior living, it is a dedicated business for us. Our antara brand has created a niche for itself . Antara senior living at Dehradun has made a mark and we have come up with another project in Noida. Going forward , we are coming up with an inter-generational (a mix of senior living and standard living) residential project in Gurgaon. But in this segment too, we are having a calibrated development approach with a focus on high quality projects.
Last year Max Estates had phenomenal growth. Going forward, what are your business plans/expansion plans ?
We plan to invest nearly Rs 3400 crore for developing 4 new residential and commercial projects across Delhi-NCR in Gurgaon and Noida over the next 4-5 years. The company has already acquired land for two residential projects. While in Noida, the company has gone for outright land purchase in Sector 128, in Gurgaon, we have adopted an asset light approach by entering into a joint development agreement with the land owner. In Noida, the company plans to develop around 250 premium residential units over 10 acre of land, with a possible launch date in July. In Gurgaon, we are coming up with an inter-generational luxury residential project (a first in Delhi-NCR). Spread over 11.8 acres, this project in Sector 36A Gurgaon will comprise 1200 units . Having a development potential of 2.4 msf with a topline potential of over Rs 3200 crore, it will be launched in H1 20024.
These two residential projects will together generate sales revenue of rs 4500 crore. Besides these two residential projects, two office developments spread over an area of 26 lakh sq ft (leasable area) will be undertaken in Gurgaon and Noida.
What is the goal of Max Estates ?
We want to grow only in Delhi-NCR – in Gurgaon and Noida and our goal is to be among the top 2-3 real estate brands in Delhi- NCR.