Indiabulls RE pays first tranche of Rs 990 cr to NTC

MUMBAI: Indiabulls Real Estate has paid the first instalment of Rs989.50 crore to National Textiles Corporation for a 10.5-acre plot comprising Poddar and Bharat Mill in Worli, two officials from NTC said. In late July and early August, the developer had emerged as the highest bidder for both the properties with bids more than double the reserve price set by NTC for the plots that are adjacent to each other.

“We received the first instalment last week ahead of the deadline and the final instalment is scheduled to be paid within 45 days of the first tranche payment and that will be after mid-December,” one of the officials said. Indiabulls had provided a bank guarantee worth Rs2,100 crore through ICICI Bank for these two transactions.

The developer has already launched a luxury residential tower as part of phase-I of the total development planned on these plots after receiving approval from NTC and has managed to receive bookings for over 40 apartments at Rs18,000-23,000 per sq ft, a company official said. Shares of Indiabulls Real Estate closed at Rs211 on the National Stock Exchange, down 0.7% from Tuesday.