Indiabulls buys Peugeot-PAL land for Rs 676 cr

Indiabulls Real Estate (IBREL), through its subsidiary Citra Developers, has bought 134 acres in Mumbai's Dombivali suburb from automobile company PAL-Peugeot for Rs 676 crore in an auction conducted by the Bombay High Court receiver today. Infrastructure company Gammon lost the bid by whisker, quoting Rs 675 crore for the land.

Indiabulls paid Rs 5,04,47,761 per acre, or Rs 1,158 per sq ft. According to industry-watchers, though the deal is justifiable in terms of what IBREL paid per square feet, it is a major deal in the Dombivali-Kalyan region where prices have been stable, or have increased marginally, over the last two years. Residential prices command Rs 2,300-Rs 2,400 per sq ft in the region.

Sources said the deal should give Indiabulls access to 15 million sq ft of saleable land if it decides to build a multiple-use integrated township.