New York Life Insurance attains 49% stake in Max Estates by investing Rs.388 crore

New York Life Insurance Company has made an investment of Rs.388 crore to purchase a 49% share in two operational office complexes owned by Max Estates, the real estate division of the Max Group.

After the completion of the transaction, New York Life will obtain a 49% ownership in two Special Purpose Vehicles (SPVs) of Max Estates. These SPVs are responsible for managing Max Towers and Max House (Phase I and II), which are fully operational commercial real estate projects situated in Noida and Delhi, respectively. Following the conclusion of the transactions, Max Estates will retain a 51% stake in the two SPVs.

Max Estates intends to allocate a significant portion of these funds towards supporting its expansion into the thriving residential market and leveraging potential market prospects.

Max Estates will be able to achieve its desired growth path by making this strategic investment, allowing the acquisition of a minimum of 2 million square feet of development opportunities annually and reshaping the landscape of residential and commercial real estate in the NCR.

New York Life holds a 22.67% stake in the publicly traded company Max Estates. Additionally, it possesses a 49% interest in Max Estates' upcoming commercial ventures in Delhi-NCR, such as Max Square, which is currently in operation on Noida Expressway in Noida. There are also two projects under development: Max Square Two, situated next to Max Square, and another project on the primary Golf Course Extension Road.

VC and MD of Max Estates,Sahil Vachani said,“We are excited to announce that our ever-growing partnership with New York Life Insurance is even stronger now. This collaboration further strengthens Max Estates' financial capacity to deliver world-class commercial and residential projects in Delhi-NCR and ensures a balanced approach to capital structure to fund the company’s growth trajectory.” 

The sustained trust of institutional investors in the company's growth prospects and its capacity to generate substantial value for all stakeholders through the appropriate market-product combination in the Indian real estate industry is a clear indication.