Premier has entered into an agreement with Horizon Projects, part of the Runwal Group, to develop an Affordable / Middle Income Housing project on 150 acres (out of 218 acres) of its land at Dombivli. The company will continue to retain the balance 88 acres (218 - 150) of its land.
The company has received Rs.220 crore as part consideration for this transaction. In addition, it will receive built up flats aggregating to 5,00,000 sq.ft., in the said project, The company, if it decides so, has the option to swap this area for a cash payout in 24 months. There is no additional financial outlay required to be made by the company in this project.
The company has utilized the above proceeds to pay certain State Government dues linked to the land and will utilize the balance to repay its corporate debt.
Premier currently has a nationwide sales and service network of 55 dealers that is being raised to 100 by December 2012. It is also setting up 200 authorized service outlets all across the country called PASS (Premier Authorized Service Stations) equipped to support the RiO.