Keppel Corporation's property arm Keppel Land has entered into a joint venture with Indian property developer Puravankara to buy a 3.09ha site in Bangalore and develop Keppel's first commercial project in India, the group announced yesterday.
The two entered into agreements through Keppel Puravankara Development (KPDL) to acquire the prime site in Yeshwantpur, Bangalore, from Metro Cash and Carry India (MCCIN) for about 4.05 billion rupees (S$81 million).
KPDL will build a 160,000 sq ft retail-cum-office facility and a Grade A office tower with a gross floor area of 1.02 million sq ft on the site, which is located about 5km north-west of Bangalore's city centre.
The retail-cum-office facility will be handed over to MCCIN upon completion, while the Grade A office tower will remain under KPDL's management.
Keppel owns a 51 per cent stake in KPDL, with Puravankara holding the remaining 49 per cent.
"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," said Mr Sam Moon Thong, president of regional investments at Keppel Land, adding that Bangalore has recorded the highest office space absorption in the Asia-Pacific in the last five years.
He added: "We are pleased to further our collaboration with Puravankara, which has a strong network and keen understanding of the local market.
"We believe this acquisition will further augment Keppel Land's commercial portfolio and will position us well to meet the urbanisation needs for prime office space in Bangalore."
Puravankara managing director Ashish Puravankara said his company has been trying to diversify its commercial portfolio over the past few years, and the partnership is in line with this strategy.
"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... We believe this project will become a landmark in Yeshwantpur," he said.
Separately, Keppel and Puravankara are partnering to develop Provident Park Square, a 2,082 unit high-rise condominium in Bangalore. About 70 per cent of the 1,102 launched units have been sold.