The land has been bought to develop its second Phoenix Marketcity shopping mall in the city. The mall has got an approval to build around 1.81 million sq. ft, which would include a million sq. ft of shopping space.

An L&T spokesperson confirmed the sale and said the land is part of a larger land parcel for mixed-use development that will have residential and offices and now, a mall.

This is the first acquisition after CPPIB earlier this month said it has invested an additional Rs938 crore in Island Star, an investment platform it co-owns with Phoenix Mills. With the investment, CPPIB increased its investment in Island Star to a total of Rs1,662 crore, constituting a 49% stake.

“Bengaluru is amongst the most preferred cities for retailers given the high percentage of the population in the working age group. The catchment area around Hebbal, the new site location, has seen the launch of over 40,000 residential units since 2014. With land parcel acquisitions in Pune, which is under development, and now in Bengaluru, the PML-CPPIB investment alliance has already committed significant portion of the total equity funds in ISDMPL within 12 months of forming the strategic alliance,” said Shishir Shrivastava, joint managing director, Phoenix Mills.

In April 2017, Phoenix Mills and CPPIB created an investment alliance to develop, own and operate retail-led, mixed-use developments across India to invest a total of around Rs1,600 crore in multiple tranches, to eventually own up to 49% in Island Star. In 2017-18, Island Star bought a land parcel in Pune for around Rs180 crore to build a shopping malls.

Currently, Island Star owns and operates a shopping mall in Bengaluru called Phoenix Marketcity, with development potential of 3.2 million sq. ft, in suburban Mahadevpura.