Keppel Land’s joint venture, Keppel Puravankara Development (KPDL), has entered a deal to acquire a 3.09 hectare site in Yeshwantpur, Bangalore, from Metro Cash & Carry India (MCCIN) for 4.05 billion rupees, or around S$81.0 million, to build a retail-and-office tower, it said on Monday.
The total development cost, including the land cost, for the mixed-use development is expected to be 10.4 billion rupees, or around S$207.4 million, it said.
After the planned 160,000 square foot retail-and-office facility is completed, it will be handed over to MCCIN, but will be managed by KPDL, it said in a filing to SGX before the market open on Monday.
Keppel Land said the deal marked its first commercial development in India.
“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,” Sam Moon Thong, president for regional investments at Keppel Land, said in the statement. “Bangalore has recorded the highest office space absorption in the Asia-Pacific region in the past five years.”
Keppel Land holds 51 percent of Keppel Puravankara Development, while Indian property developer, Puravankara Ltd. holds the remainder, it said.
In a separate deal, Keppel Land is working with Puravankara to develop Provident Park Square, a 2,082-unit high-rise condominium project off Kanakapura Road in Bangalore, the statement said.
It said more than 70 percent of the 1,102 launched units have sold so far.
Keppel Land and Puravankara also developed a 1,573-unit high-rise condo project, the Elita Promenade, in Bangalore in 2012, it said.