Now a real estate project like an IPO; price determined by bidding

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Now a real estate project like an IPO; price determined by bidding
The Purvankara Palm Beach project at Hennur in Bangalore is making history. For the very first time in India's real estate history, we have a project whose pricing will be determined by the market. That's like a price discovery mechanism in an IPO.

How does it work?

One needs to first submit an expression of interest. The expression of interest will be within a price bank of Rs 4290 to Rs 4650.

The company will than allot a reference number for each such expression of interest. The allotment would than be made on a "first come first serve basis" after the price has been discovered.

The pre-launch price would be than determined and if one is allotted the unit of their choice, one can buy. Otherwise the company will refund the booking amount paid.

Planned on the lines of a tropical beach resort, the Purvankara Palm Beach apartment project spread over 19.37 acres with a central courtyard - The Lagoon - on 4 acres, promises to replicate the sights and sounds of the sea in Bangalore.

Read more about: ipo, real estate, puravankara
Story first published: Monday, March 10, 2014, 8:41 [IST]
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