NDTV has secured a lease for 1,28,000 sq ft in Max Square, a project by Max Estates Limited. Max Square has already leased out 50% of its office space within six months of its completion. Located on Noida Expressway, the development has a total leasable area of 700,000 sq ft, with New York Life Insurance Company as a 49% partner. The high demand for this premium space has led to a rental premium of 25%-30% over the prevailing market rate. Despite challenging financials in H1 FY24, Max Estates has strategically acquired land parcels, signaling its intent for potential future developments in the Delhi-NCR region.
NDTV has leased 1,28,000 square feet at Max Square. Managed workspace firm Skootr had earlier leased 100,000 sq ft spread across two floors in the same building.
Total leasable area for Max Square is 700,000 sq ft and New York Life Insurance Company is a 49% partner in the project.
With this, Max Square has transacted (LOI Included) 50% of the office space including 100% of the retail/F&B is committed within just 6 months of its completion. The company expects to achieve 100% leasing over next 6-12 months. Rental at this project is at a premium of 25%-30% over the prevailing market rate in the micro market.
Max Square is a subsidiary of Max Estates Limited (MEL). MEL has also witnessed positive traction for commercial office leasing for both of its new assets – Max Square on Noida Expressway and Max House – Phase II in South Delhi. The company has pre-leased 54% of the office space at Max House– Phase II. It is expected to be complete in Q3 FY24. Max House Phase2 is an extension of Max House Phase 1, with a larger leasable area of ~1.5 lakh sq.ft.
Lease rental income from Max Towers stood at Rs 18.2 crore, from Max Square stood at Rs 1.6 crore and from Max House Phase 1 stood at Rs 7 crore in H1 FY24.
The company had recently concluded the reverse merger of Max Ventures and and Industries (MVIL) into Max Estates (MEL). MVIL will be amalgamated and all the assets and liabilities of MVIL will vest with MEL. In terms of acquisitions and developments, MEL made notable moves during this quarter by acquiring two land parcels located at Sector 129 in Noida. The transaction amounted to a total consideration of Rs 219.26 crore, excluding additional expenses such as stamp duty and incidental costs.
Over the past few years, Max Estates has developed a portfolio of 80 lakh square feet within the Delhi-NCR region.
But, Max Estates faced a challenging quarter in the fiscal year 2023-24, recording a net consolidated loss after tax of Rs 4.51 crore. This is in stark contrast from the previous year's corresponding quarter when the company had reported a net consolidated profit after tax of Rs 3.64 crore.
The decline in financial performance was evident in the company's net consolidated total income for the second quarter of FY24, which stood at Rs 27.78 crore, reflecting a decrease of 16.75% compared to the Rs 33.37 crore reported in the similar period of the previous fiscal year.
During H1 FY23, the company continued its employee stock option scheme, specifically the Max Estates Employees Stock Option Scheme-2016. As part of this initiative, 30,918 equity shares, valued at Rs 10 each, were issued and allotted.
In a broader context, the real estate sector is highly sensitive to market fluctuations, economic conditions, and regulatory changes. Market conditions and operational challenges might have contributed to this downturn, leading to the company's revised financial status. The acquisition of land parcels by its subsidiary, Max Square, might signal the company's strategic focus on expanding its real estate portfolio, potentially aiming for future development projects or market positioning. And with the NDTV lease, it's evident that Max Square is fast becoming a go-to destination for businesses in search of prime office spaces.
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