Keppel Puravankara Development Pvt. Ltd. (KPDL), is an associate of Bangalore headquartered and Singapore based Keppel Land, one of Asia’s premier property companies.
Ashish R. Puravankara, managing director, Puravankara said, “Over the last couple of years, there has been a conscious effort to diversify Puravankara’s existing commercial portfolio. The timing of the project could not be better, seeing as the demand for office and retail space, is on an upward trajectory and yielding good returns, especially in Bangalore.
The Grade A office development will be managed by KPDL upon completion.The deal includes the cost of around Rs 80 crores for KDPL to construct a 160,000 sf. ft. retail-cum-office facility on the land, which will be handed over to Metro Cash & Carry India.
“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,” said Sam Moon Thong, President (Regional Investments), Keppel Land.
The acquisition is in line with Puravankara’s overall commercial strategy, for the development of the mixed-use project to expand Puravankara’s commercial presence over the next five year.
CBRE South Asia was the advisor to the transaction.
Commercial real estate is seeing increasing demand from companies across sectors. According to CBRE South Asia, the first half of 2018 saw an addition of about 1.9 million sq. ft. of fresh retail supply across the seven key cities, led by Chennai, Hyderabad and the National Capital Region (NCR).
Separately, Puravankara plans to launch 14.11 million sq ft of projects across both luxury and affordable brands over the next 12 months. Puravanakara’s net debt was Rs 2,438 crore at the end of the June quarter.