Mumbai-based Wadhwa has also struck an equity partnership with Bengaluru-based developer Salarpuria Sattva Group to develop the project jointly. This project will mark the entry of Salarpuria Sattva Group, a prominent residential and commercial office developer in Bengaluru and Hyderabad, into Mumbai.
The 2.3 acre plot, which has been sold for around Rs170 crore, will have around 600,000 sq. ft of residential development.
“The debt we are raising will be used for land payment. The project, which is located in Chembur, will be launched in the next few months and will have apartments ranging from two bedroom to four bedroom homes,” said Navin Makhija, managing director, Wadhwa Group. Spokespersons of Salarpuria Sattva and Piramal declined to comment.
Beverage and consumer goods firm PepsiCo India sold its defunct Duke’s factory at Chembur. The factory, which was used for manufacturing Duke’s beverages apart from PepsiCo’s other soft drink brands, has not been operational since 2014.
The project being planned on the plot of land is one of the seven projects Wadhwa Group is planning to launch in the coming year, after launching just one residential project in 2017.
Makhija said project launches are being planned across micro-markets in Mumbai.
Wadhwa is a part of Piramal Finance’s Piramal Preferred Partners scheme under which the latter pre-sanctions an open line of credit to back about 8-10 top developers across cities.
Despite the slowdown in the sector, land transactions have been happening as distressed assets rise and large corporates divest non-core land parcels. However, there are more sellers in the market today than buyers, with only developers with specific requirements buying land, unlike earlier when they bought land for future development.
“Only some developers who have access to capital to buy land and even they are buying only if it is available at reasonable prices because there are ample opportunities today to acquire good projects at a good price,” said Chintan Patel, partner, deal advisory-real estate and hospitality, KPMG India.
This article was first published on Livemint.com