Mumbai: Premier, known as the maker of Fiat 1100 Premier Padmini cars, has entered into an agreement with Runwal Group to jointly develop 150 acres of the total 218 acres of land it owns in Dombivli.
Runwal, which purchased the property through its subsidiary company, Horizon Projects Pvt Ltd, paid Rs 220 crore to Premier. The developer will also hand over built-up flats aggregating to 5 lakh sq ft in the proposed township. Premier, which will retain the balance 68 acres, can swap this area for a cash payout in 24 months.
Sandeep Runwal, director of Runwal Group, confirmed the deal, saying they hope to start construction in the township project after two years. Maitreya Doshi, chairman of Premier, said the deal enables the company to sell these flats for a profit in the future. "At the same time, the company is protected by the option to receive cash payment of over Rs 200 crore within two years in lieu of this built-up area,'' said Doshi.
Premier originally owned 483 acres in Dombivli. Of this, 89 acres was sold in 2002 and the money received was used to repay the company's various dues. Of the balance, 175 acres was transferred with prior government approval to the erstwhile Premier-Peugeot joint venture which was forced into closure by the unexpected abandonment by the French carmaker Peugeot in 1997. Premier's balance 218 acres is now covered in this transaction.
Metropolitan Infra Housing Pvt Ltd had purchased 180 acres of the Pal-Peugeot land for a total consideration of Rs 726 crore and Rs 1 lakh in 2011. Premier has shut its old car assembly line and sold the plant in Mumbai. The company land in Dombivli |
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