Keppel enters deal to acquire 49 percent of Bangalore office project it doesn’t already own

Mural of construction gear in Singapore's Little India neighborhood.Mural of construction gear in Singapore's Little India neighborhood.

Keppel Corp.’s Keppel Land is acquiring the 49 percent it doesn’t already own of a commercial office project in Yeshwanthpur, Bangalore, India, called the Metro Project, from Puravankara Ltd. for 1.16 billion Indian rupees, or around S$21.1 million, the Singapore-listed company said in a filing to SGX Wednesday.

The adjusted net asset value placed on the 49 percent stake, based on the agreed value of the Metro Project, was around 1.12 billion rupees, or around S$20.4 million as of end-July, Keppel said.

Keppel Land is making the acquisition via its wholly owned subsidiary Keppel Investment (Mauritius).

In 2018, Keppel Land had entered a deal with Puravankara to acquire a 3.09 hectare site in Yeshwantpur, Bangalore, from Metro Cash & Carry India (MCCIN) for 4.05 billion rupees, which at the time was around S$81.0 million, to build a retail-and-office tower. The project was planned as a 160,000 square foot retail-and-office facility.

In November, Abhishek Kapoor, executive director and CEO of Puravankara, told CNBC TV 18 that the company has been reducing its debt, and it has already paid down 9 billion Indian rupees, or around S$163.19 million, although its debt is still around 10 billion rupees.

“It is consistently coming down and with all the efforts of new launches we will see a lot of our assets and investments getting monetized that will only enable us to further reduce debt,” Kapoor told CNBC-TV18 in an interview, according to a report published to the Indian news channel’s website.