Max Estates Ltd has purchased 84.71 acres of land in West Delhi from entities holding land on behalf of the company’s promoters through a share-swap transaction valued at ₹420 crore, as part of its expansion strategy.

According to the regulatory filing, the 85-acre land parcel is expected to provide 4-6 million sq ft of developable area, with an estimated revenue potential of ₹10,000-12,000 crore.

With the acquisition, Max Estates has marked its entry into Delhi’s residential real estate market. The company already has residential projects in Gurugram and Noida, within the Delhi-NCR region.

Max Estates on Saturday said it had signed a share purchase agreement to acquire 100% stakes in nine promoter-owned companies that collectively hold 84.71 acres of land.

The transaction has been structured as a non-cash share swap, with Max Estates offering equity shares as consideration.

Under the agreement, the realty firm will issue around 70 lakh equity shares at ₹597.50 apiece to the identified allottees. The total value of the shares to be issued is estimated at ₹420.2 crore.

Following the transaction, all nine land-holding companies will become wholly owned subsidiaries of Max Estates.

Max Estates, which is among the country’s prominent real estate developers, said the acquisition was driven by its robust residential launch pipeline, which currently has a total revenue potential of ₹16,150 crore.

"The company is targeting for next phase of growth in presales and pipeline, a trajectory that requires continuous replenishment of developable land...," the company said, according to PTI.

The developer plans to undertake an integrated mixed-use project on the site, comprising residential and retail developments along with social and community infrastructure.

The transaction will expand Max Estates’ land bank and strengthen its future revenue pipeline without requiring any cash outflow.

“This is a landmark transaction for Max Estates. It gives us our first foothold in Delhi -- the one core NCR market we did not yet have a presence in -- at a fraction of prevailing land values elsewhere in the region, and without deploying a rupee of cash.”

He said the land parcel is strategically located in an area central to Delhi’s westward urban expansion under Master Plan 2047. The area is also witnessing strong momentum in land pooling and benefits from improving connectivity through UER-II, Dwarka and IGI Airport.

"At this scale, the parcel gives us a multi-year, phase-able pipeline that directly addresses the land-bank visibility, while remaining significantly accretive for all our shareholders," Vachani mentioned.

(With inputs from agency)