Puravankara Ltd, one of India’s largest real estate developers, said one of its associate companies will buy a 7.6 acre plot in Bangalore’s Yeshwantpur from international retailer Metro to develop a commercial complex.
The deal will be carried out through Keppel Puravankara Development Private Limited, a joint venture between Puravankara and Singapore’s Keppel Land in which the Indian company owns 49%.
Under the agreement, Keppel Puravankara will develop and handover a 160,000 sf. ft. retail-cum-office facility on the plot to Metro Cash & Carry for the use of the retailer.
Including the Rs 80 cr expected to be spent on the building, the total cost of the deal for Keppel Puravankara will be Rs 405 cr, the Indian company said.
Metro Cash & Carry is the oldest multi-national retailer to establish a presence in India, and the cash and carry store in Yeshwantpur is well over two decades old.
The outlet was set up when Yeshwantpur was a little-known suburb of Bangalore. Today, the area — which lies to the north of the city — is among the most well developed due to rapid expansion of the city in recent years.
This will also be the first commercial development for Puravankara, which has so far focused on residential projects.
Separately, the two companies are also working together to develop Provident Park Square, a residential project off Kanakapura Road in Bangalore with a 2,082 flats. More than 70 percent of the 1,102 launched units have sold already.
As for the latest deal, the “Grade A” office development will be managed by Keppel Puravankara.
“Over the last couple of years, there has been a conscious effort to diversify Puravankara’s existing commercial portfolio,” said Ashish R. Puravankara, Managing Director, Puravankara Limited.
“This commercial project, for the development of the mixed-use project is in line with our strategic plan to expand Puravankara’s commercial presence over the next five years.”
He added that the demand for office and retail space is on an upward trajectory in Bangalore.
Sam Moon Thong, President (Regional Investments) at Keppel Land said Bangalore has recorded the highest office space absorption in the Asia-Pacific region in the past five years and said Puravankara has a keen understanding of the local market.
The plot is located next to a metro rail station and also has direct access to Tumkur Road and Dr Rajkumar Road, said the Indian developer.
Also in the vicinity are a five-star hotel, a mall, a hospital and a premium residential project, it added.