Max Estates has received approval from the Noida authority for its 'Delhi One' commercial project in Sector 16B, following the settlement of INR 613 crore in dues. The project, initially stalled due to financial issues, will now proceed after Max Estates agreed to a payment plan under a resolution plan approved by the NCLT in February 2023. The development will add 2.8 million square feet of office and residential space, with significant portions already constructed. This approval marks a crucial step for Max Estates and underscores Noida's commitment to advancing commercial real estate and economic growth.
Max Estates, part of the Max Group, has received the green light from the Noida authority to proceed with a significant commercial project in Sector 16B. This approval comes after the company resolved hefty dues amounting to INR 613 crore owed to the authority. This move is seen as a pivotal step for the project, previously stalled by financial issues.
In February 2023, the National Company Law Tribunal (NCLT) approved Max Estates' resolution plan for the development of a key commercial site, covering approximately 34,697 square meters. The project, named 'Delhi One,' was initially developed by the 3C Group, which faced insolvency. The NCLT's directive required Max Estates to obtain permission from the Noida authority to implement its plan.
The Noida authority had outstanding dues of about INR 932 crore related to the project, but under the resolution plan, Max agreed to clarify a payment of approximately INR 325 crore. In a strategic proposal, the company offered to pay INR 542 crore over three years, about 58% of the total dues. With added interest included, the total payment reached INR 613 crore, and the authority stated it would receive 25% of the payment upfront.
This commercial development has the potential to significantly enhance Max Estates' portfolio, adding between 2.5 to 3 million square feet of new development space. Experts indicate that Max may need to adjust its original construction plans due to the rise in construction costs since the creditors approved the project in 2019. The approvals necessary to resume work are expected to take between six months to a year.
Max Estates plans to invest around INR 2,000 crore in constructing 2.8 million square feet of Grade A office spaces and serviced apartments. Currently, the project includes four operational towers, a serviced apartment tower, and four commercial towers under construction. Additionally, a retail block is being built, with nearly 50% of the civil work already completed.
Before the project faced delays, a substantial portion of the superstructure for different buildings was completed. Of the planned 2.8 million square feet, about 1.3 million square feet have been pre-sold, while the remaining 1.5 million square feet will be offered for lease or sale.
This newly approved plan not only marks a significant comeback for the site but also reflects Noida's ongoing commitment to developing commercial real estate. The city has been increasingly focused on attracting investments and fostering growth in the real estate sector. With this initiative, Max Estates could play a key role in reshaping the commercial landscape of Noida, contributing to job creation and economic development in the region.
As commercial real estate demand remains strong in Noida, Max Estates is well-positioned to capitalize on this momentum. The success of the Delhi One project could lead to further developments in the area, promising a bright future for both the company and the local economy.
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