Mumbai: Keppel Land, the diversified conglomerate arm of Singapore-based Keppel Corporation, is set to acquire part of Piramal Realty's commercial development, Piramal Agastya Corporate Park, in Mumbai's central Kurla district for more than Rs 1,200 crore, said persons with direct knowledge of the development. This will be one of the largest direct commercial real estate transactions so far this year.

Keppel Land has signed a term sheet for the acquisition of one million square feet of commercial real estate spread over a total of six full floors in this multi-tenant tower. The deal will exclude approximately 200,000 square feet of office space that occupies Pyramid Projects. “A final agreement will be signed in the next few weeks,” said one of the people mentioned above.

Separate email inquiries to Keppel Land and Piramal Realty remained unanswered at the time of publication. Trading adviser CBRE South Asia declined to comment on the development.

Piramal Realty launched in 2012 and Goldman Sachs and Warburg Pincus are among the investors. Goldman Sachs and Warburg Pincus, two international equity partners, have invested approximately $434 million in Piramal Realty at the entity level, the largest private equity commitment from an Indian real estate firm in the entire firm.

Keppel Land is geographically diversified in Asia, with its main markets in Singapore, China and Vietnam, while it continues to expand into other markets, including India and Indonesia.

In India, the company has teamed up with the Rustomjee Group to build an integrated township in Thane, near Mumbai. Separately, Keppel Land has also entered into a joint venture with Emerald Haven Realty, a subsidiary of TVS Group, to develop a freehold condominium project on nearly 6 acres of land in south Chennai.

The new deal between Keppel Land and Piramal Realty reinforces the continued interest of global institutional investors, including private equity, sovereign wealth funds and insurers, in Indian commercial real estate in the context of rapid urbanization, favorable regulations and high demand for residential buildings and of offices around the world country.

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