SINGAPORE (Oct 1): Keppel Land, the property arm of Keppel Corporation, is developing its first commercial property in India through a joint venture.

Subsidiary Keppel Puravankara Development (KPDL), a joint venture company with an Indian property developer, Puravankara, entered into agreements to acquire a prime 3.09ha site from Metro Cash & Carry India.

Located in the prime commercial hub of Yeshwantpur, the site is 5 km northwest of Bangalore’s city centre. The site enjoys excellent accessibility to other parts of the city and other business districts via key transport routes, such as Bangalore’s local mass rapid transit system.

Keppel Land holds a 51% stake in KPDL, with Puravankara holding the remaining 49% stake.

The total consideration is INR 4,050 million ($81 million) subject to adjustments. The total consideration includes the cost of $16 million for KDPL to construct a 160,000 sf retail-cum-office facility on the land, which will be handed over to MCCIN.

The Grade A office development will be managed by KPDL upon completion. The total development cost, inclusive of the land cost, for the entire mixed-use development is $207.4 million.

Sam Moon Thong, President (Regional Investments), Keppel Land, says 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. Bangalore has recorded the highest office space absorption in the Asia-Pacific region in the past five years.

Year to date, shares in Keppel Corp are down 7.6% to $6.96.