American snack and beverage giant PepsiCo India has sold a 2.5 acre land parcel in the Central suburb Chembur to The Wadhwa Group for ₹ 190-200 crore.
Pepsi had bought the land parcel from Videocon in 1996 to set up a bottling plant for their beverage Duke’s. The factory has been defunct since 2014.
Industry watchers said that several key developers were eyeing the marquee land parcel for its strategic location. Wadhwa Group had outbid players such as Godrej Properties, K Raheja Corp, Mahindra Lifespace among others.
Wadhwa Group plans to develop the project into a residential segment.
Real estate advisory firm CBRE was the transaction advisor for the deal. Pepsico, Wadhaw and CBRE declined to comment on the deal.
According to various market report, the suburb of Chembur has many under-construction and ready projects in the area. Several sick industrial units have also given way to luxurious residential homes, making it a preferred choice for end-users as well investors.
According to a Cushman & Wakefield report, the urban housing demand is the highest in Delhi-NCR across amongst the top 8 cities, forming nearly 24-26 per cent of the demand.
Mumbai and Bengaluru will follow Delhi-NCR and are expected to generate housing demand of about 711,000 and 686,000 units respectively over the next five years. While majority of the demand emanates from MIG within Mumbai, LIG accounts for the maximum proportion in Bengaluru.
In most of the cities, except Mumbai, developers are currently focusing on MIG with 60-70 per cent of the upcoming supply concentrated in this segment. Prices for under-construction properties in the area, range from ₹ 12,000 to 30,000 per sq ft.