Mumbai: Beverage and consumer goods firm PepsiCo India sold its defunct Duke’s factory spread across 2.5 acres of land at Chembur in Mumbai for around Rs170 crore to property developer The Wadhwa Group, three people close to the development said.
“Wadhwa bought the factory land through a bidding process which concluded last month,” said the first person mentioned above. The area has a total development potential of around 5 million sq ft and the Mumbai-based builder is looking to build the land into a residential project, the person said.
Several prominent developers in the city, including Mahindra Lifespace, Godrej Properties Ltd and Kalpataru Ltd; were in the race to buy the land because of its strategic location, said the second person.
The factory, which was used for manufacturing Duke’s beverages apart from PepsiCo’s other soft drink brands, has not been operational since 2014 and has been for sale for the last six months.
In 1994, PepsiCo bought out Mumbai-based Duke and Sons Pvt. Ltd that sold aerated soft drinks under Duke’s brand, from its founder Dinshwaji Pandole. As per PepsiCo India’s website, Duke’s is one of nine beverages brands sold in India. It was relaunched in 2011.
Both PepsiCo and Wadhwa declined to comment on the deal.
Real estate advisory firm CBRE was the transaction advisor for the deal. It declined to comment.
“Chembur is a good micromarket from a connectivity and infrastructure perspective. The Wadhwas are confident they would be able to develop the land successfully,” said the third person who was closedly involved with the transaction.
According to property advisors and consultants, Chembur being a well established residential suburb in Mumbai has attracted many big developers in the recent past. However, as the place was fully developed and short of big land parcels, such factory lands are sought after by many big developers for residential projects.
“In central Chembur, there isn’t much one can do as it is fully developed and whatever redevelopment happens, it happens on small plots. So the area which is adjacent or away from the main Chembur area, one can find bigger plots of land. Duke’s plant being one of the cases,” said Ashutosh Limaye, research head, JLL India, a property consultant.
Walls N Roof Comment : PepsiCo Duke’s factory had attracted most of the renowned developer since a long time due to its connectivity and infrastructure prospective in Chembur. Wadhwa Developer have been successful in inking the deal for INR 170 crore. Other developers like Kalpataru, Wadhwa Developers are well known for their quality real estate properties PAN India. Wadhwa group has many ongoing projects in Thane like Wadhwa Courtyard, Evergreen Heights, The address, Epitome Imperial Heights etc and is planning to develop residential project in PepsiCo Duke’s factory land which would be looked forward for its connectivity aspect.