Max Estates targets ₹700 crore peak rent within four years

Max Estates Limited is targeting about ₹700 crore of annual commercial rental income at peak occupancy within the next four years, compared with ₹158 crore in FY26 on a 100% basis. The plan rests on fully occupied operating offices and pre-leasing at Max Square Two in Noida and Max District in Gurugram before their occupancy certificates.

How is Max Estates targeting ₹700 crore of commercial rent?

Max Estates is targeting about ₹700 crore of annual rental income at peak occupancy within the next four years, up from ₹53 crore in FY24 and ₹158 crore in FY26. The figures are on a 100% portfolio basis. Max Estates says its share at peak occupancy would be about ₹350 crore because it holds 51% of its commercial assets and New York Life holds the remaining 49%.

The target depends mainly on development and stabilisation of new assets rather than only growth in the existing operating portfolio. Max District is the largest disclosed contributor, with annual rental potential of more than ₹225 crore. Max One has potential annual rent of about ₹145 crore, Max Square Two has more than ₹125 crore, while Max Square and Max Towers are each shown at ₹75 crore and Max House at ₹55 crore.

The portfolio’s rental figure rose by ₹105 crore between FY24 and FY26, before Max Square Two and Max District receive occupancy certificates. Management also states an aspiration to add one million square feet of commercial real estate each year, although the presentation does not identify projects beyond the disclosed portfolio to meet that aspiration.

Which Max Estates offices are fully occupied?

Max Estates reports 100% occupancy across Max Square, Max House and Max Towers, its operating commercial assets. Its FY26 guidance called for full occupancy across operating assets, and the FY26 actual records “100% operational” while noting pre-leasing at Max District and Max Square Two.

Max Towers in Sector 16B, Noida has 358,234 square feet of leasable area, weighted average rent of about ₹136 per square foot a month and a weighted average lease expiry, or WALE, of 3.2 years. Its last achieved rent was ₹156 per square foot a month, and Cyril Amarchand Mangaldas was its largest tenant at 22% of occupied space.

Max House I in Okhla has 108,006 square feet, weighted average rent of about ₹147 per square foot a month and a 4.6-year WALE. Max Square in Sector 129, Noida has 680,665 square feet, weighted average rent of about ₹79 and a 4.6-year WALE. Max House II has 150,839 square feet, weighted average rent of about ₹160 and the longest disclosed WALE at 6.2 years.

The stable net operating margin, or earnings before interest, tax, depreciation and amortisation margin, is shown at 93.0% for Max Square and Max Towers and 90.0% for Max House. Those percentages apply to stabilised operating assets, rather than establishing the margin or rental timing for buildings that remain under construction.

What has Max Estates pre-leased at Max Square Two and Max District?

Max Estates has pre-leased about 310,000 square feet at Max Square Two and about 200,000 square feet at Max District ahead of the projects’ occupancy certificates. Max Square Two is 34% pre-leased more than one year before its certificate, while Max District is 20% pre-leased in Phase II more than two years before its certificate.

Max Square Two is a Sector 129, Noida project on an approximately four-acre parcel, with about 0.9 million square feet of leasable area and about 0.2 million square feet of retail potential. Its approximately 310,000 square feet of pre-leasing was completed at a premium of more than 25% to the micro-market, according to Max Estates. The project has annual rental potential of more than ₹125 crore and its occupancy certificate is scheduled for Q2 FY28.

Max District is in Sector 65, Gurugram, on a 7.35-acre parcel with about 1.6 million square feet of leasable area. Its approximately 200,000 square feet of pre-leasing was completed at a premium of more than 35% to the micro-market. The project has annual rental potential of more than ₹225 crore, with occupancy certificates scheduled for Q2 FY28 for Phase I and Q3 FY29 for Phase II.

The two developments differ in both scale and timing. Max District has about 0.7 million square feet more leasable area and at least ₹100 crore more disclosed annual rental potential than Max Square Two. Max Square Two has the higher disclosed pre-leased proportion against total leasable area, at 34%, while Max District’s stated 20% applies to Phase II.

When will Max Estates’ new offices receive occupancy certificates?

Max Estates schedules an occupancy certificate for Max Square Two in Q2 FY28, followed by Max District Phase I in Q2 FY28 and Max District Phase II in Q3 FY29. The presentation does not provide individual tenant rental-start dates, so the certificate milestones are the disclosed timing markers for conversion of pre-leasing into operational occupancy.

At Max Square Two, Tower A had reached ninth-floor-level work by Q2 FY27, after lower-ground works were under way in Q3 FY26. Tower B had reached 11th-floor-level work in Q2 FY27, compared with upper-ground work completed in Q3 FY26. Max Estates describes the construction sequence from Q3 FY26 through Q2 FY27 as on track.

At Max District, Phase I had completed basement 2, basement 1 and the ground-floor roof by Q2 FY27, with work continuing on the first- and second-floor roofs. Phase II had completed the sixth-floor roof slab and had the seventh-floor roof slab in progress by Q2 FY27. These construction measures precede the Q2 FY28 and Q3 FY29 certificate targets.

How does Max One contribute to Max Estates’ rental plan?

Max One adds about ₹145 crore of annual commercial real estate lease potential to the ₹700 crore peak-rental plan, with completion shown in FY30. It is a mixed-use project in Sector 16B, Noida, rather than one of the two office projects where Max Estates has disclosed early pre-leasing.

The project has about 2.5 million square feet of total saleable area and a gross development value, or GDV, of ₹3,221 crore. Its commercial lease portion is distinct from the ₹2,088 crore of disclosed pre-sales, which includes ₹1,221 crore sold by the erstwhile developer. Max One therefore contributes both residential or mixed-use sales activity and future annuity potential within the broader portfolio.

Conclusion

Max Estates’ commercial plan combines ₹158 crore of FY26 rental on a 100% basis with fully occupied operating offices and development-led additions. Max District, Max One and Max Square Two account for more than ₹495 crore of the stated ₹700 crore peak annual-rental potential, making project execution and leasing conversion central to the target.

The next disclosed milestones are the Q2 FY28 occupancy certificates for Max Square Two and Max District Phase I, followed by Max District Phase II in Q3 FY29 and Max One’s FY30 completion. Further pre-leasing, construction progress and the pace at which completed assets approach peak occupancy are the disclosed factors to watch against management’s four-year rental objective.