Premier a name which is been related to the erstwhile and trusted Fiat 1100 Premier Padmini cars will enter into the real estate sector as it begins to develop about 150 acres of land in Dombivli. Premier has signed an agreement with Runwal Group to jointly develop this plot of land.
An estimated 220 crore was paid to the auto maker and Premier will get custody of built up flats amounting to 5 lakh sq ft on completion of the project. Of the 218 acres of land, 68 acres which hasn’t been considered in this agreement can be sold by Premier after a period of two years.
Earlier Premier owned about 483 acres of land of which 89 acres was sold by the company to help pay off outstanding dues. Of the remaining land, 175 acres was transferred to the Premier – Peugeot JV which was liquidated in ’97 thereby leaving Premier with 218 acres. The 180 acres of land has been sold to Metropolitan Infra Housing Pvt Ltd through an auction for a price of rupees seven hundred and twenty –six crore and one lakh. Apart from these land deals, the company also sold a 36 acre plot for 110 crore in 2005. These trends have been seen as current property rates have allowed for manufacturers to shut down their businesses and take to construction of residential spaces which could bring in required capital and more.