Bengaluru: Keppel Puravankara Development Pvt Ltd, a joint venture between Singapore-based Keppel Land Ltd and Puravankara Ltd, has agreed to buy a 7.6 acre land parcel in Bengaluru for 405 crore to develop its first commercial office-cum-retail project.

Keppel Puravankara has entered into an agreement with Metro Cash & Carry India Pvt Ltd for the land located in Yeshwanthpur. The project will have an office tower of around 1.02 million sq ft along with another retail-cum-office facility as part of a mixed-use development.

“The total consideration is approximately 405 crore. The total consideration includes the cost of approximately 80 crore for KDPL to construct a 160,000 sq ft retail-cum-office facility on the land, which will be handed over to Metro Cash & Carry," the company said on Monday.

The office development will be managed by Keppel Puravankara upon completion.

“Over the last couple of years, there has been a conscious effort to diversify Puravankara’s existing commercial portfolio. This commercial project is in line with our strategic plan," Puravankara Managing Director Ashish R. Puravankara said in a statement.

Puravankara said the timing of the project was right, with office space and retail being on an upward trajectory and yielding good returns, especially in Bengaluru.

“Bangalore has recorded the highest office space absorption in the Asia-Pacific region in the past five years. We believe this acquisition will further augment Keppel’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.

Keppel Land is the property arm of Keppel Corporation, one of Singapore’s largest multinational groups with key businesses in offshore and marine, property, infrastructure and investments.