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Keppel Land, via partly-owned unit Keppel Puravankara Development Pte Ltd (KPDL), has agreed to acquire a prime 3.09ha site in Yeshwantpur, Bangalore from Metro Cash & Carry India Private Ltd (MCCIN).
KPDL, a 51:49 joint venture between Keppel Land and Indian property developer Puravankara Ltd, intends to pay INR 4.05 billion (approx. S$81.0 million) for the site, subject to adjustments.
The overall consideration includes cost of INR 800 million (approx. S$16 million) for KDPL to build a 160,000 sq ft retail and office facility on the site that will be turned over to MCCIN.
KPDL also intends to build a Grade A office tower with a gross floor area (GFA) of 1.02 million sq ft on the prime land. This represents Keppel’s first commercial project in India, which will be managed by the joint venture upon completion.
The overall development cost, including the land cost for the entire mixed-use project, amounts to INR 10.4 billion (approx. S$207.4 million).
“India is one of the fastest-growing major economies in the world, while Bangalore, as one of the primary hubs for the technology industry, is among the largest and fastest-growing office markets in the country. Bangalore has recorded the highest office space absorption in the Asia-Pacific region in the past five years,” said Keppel Land’s president for regional investments Sam Moon Thong.
Puravankara managing director Ashish Puravankara commented: “Over the last couple of years, there has been a conscious effort to diversify Puravankara’s existing commercial portfolio. This partnership with Keppel Land for the development of a mixed-use project is in line with our strategic plan to expand our commercial presence over the next five years.
“The timing of the project could not be better, seeing as the demand for office and retail space, especially in Bangalore, is on an upward trajectory and yielding good returns.”
In addition, the mixed-use site is located about 5km northwest of Bangalore’s city centre. Aside from being next to the Sandal Soap Factory MRT station along the green line, the prime site is adjacent to Brigade Gateway, an integrated precinct that houses the Brigade School, the World Trade Centre, Columbia Asia Hospital, Brigade Orion Mall, Gateway Residences condominium and the five-star Sheraton Grand Hotel.
Keppel Land has also teamed up with Puravankara to build Provident Park Square, a high-rise condominium with a total of 2,082 units off Kanakapura Road in Bangalore.
Following its launch in March, over 70 percent of the 1,102 units released for sale have been taken up.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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