For about Rs 200 crores Puravankara Projects has purchased a 25-acre plot in Bengaluru from cash strapped realty firm Unitech.
The plot in north Bengaluru was to build residential units by Unitech. Puravankara who has recently signed the deal plans to build commercial property on that plot to expand and strengthen its existing portfolio.
As per the sources aware of the deal have confirmed that as of now 12.5 acres of land have been acquired while the agreement was to acquire 25 acres. The rest of the land is in the clearance stage. Puravankara is to build 2 million sq ft of office space on the acquired land. The realty developer, which has largely focused on the residential segment, plans to develop 10 million sq ft of commercial and retail operations by 2023.
The company aims to create a platform for office assets. At present, it has nearly 5 million sq ft that is either at the design or construction stage.
Puravankara has already acquired land in Bengaluru, Mumbai, Pune, and Hyderabad to expand its commercial portfolio. Last year, in the largest commercial land deal in Bengaluru, Keppel Puravankara Development acquired 7.6 acres of land from Metro Cash & Carry India for Rs 405 crore. Unitech had sold 74 acres in Gurgaon, Chennai, and Hyderabad for Rs 260 crore in 2017 to boost its cash flow and complete its projects. In December, the Supreme Court had ordered a forensic audit of the Unitech Group and its units to probe alleged monetary irregularities and diversion of homebuyers’ money by the company’s promoters and directors.