The land parcel is estimated to fetch the company between Rs 8 billion and Rs 10 billion. The land has development potential of 4 million square feet, and it could become the largest land deal in south India this year.

“The land is close to (Bengaluru) airport and has good development potential to build a commercial property. That’s why many big developers have shown interest in the plot,” said the source.

L&T sold a part of the factory land in Hebbal area to Phoenix Mills-CPPIB in April for Rs 6.5 billion, and the combine is building a mall on 1 million sq ft of the plot. The rest of the land is up for sale. An L&T spokesperson refused to comment on the matter.

Bijay Agarwal, managing director at Salarpuria Sattva group, said: “We are bidding for it.” Property consultant JLL is believed to be running the mandate.

L&T was looking to develop the land and build a commercial project, but dropped the plan later. However, it could not be independently verified.

The sale of land parcel is part of L&T’s plans to sell non-core assets and generate cash for its core businesses, sources said. It sold its electrical and automation business to Schneider Electric, a global player in energy management and automation, for Rs 140 billion in May this year.

The company’s general insurance business was sold to HDFC ERGO General Insurance, the insurance arm of mortgage lender HDFC, in 2016 for Rs 5.51 billion.

L&T has land parcels in cities such as Mumbai, Bengaluru and its property development arm L&T Realty has developed commercial and residential properties in Mumbai. L&T Realty has also built commercial properties in Navi Mumbai as part of Seawoods Railway Station development by L&T and building malls in Hyderabad as part of metro development.

Property consultant Colliers International said Bengaluru North comprising Hebbal-Yelahanka was one of the fast-emerging micromarkets in the city. Bengaluru North saw a rental increase of 5.1 per cent in the second quarter of 2018, one of the highest among office hubs in the country.

“The micromarket is fast rising with Hebbal catering to spillover demand from Outer Ring Road and availability of large floor plates in this micromarket has been enticing occupiers in 2018. Occupiers from various sectors such as consulting, engineering and manufacturing and a few flexible workspace operators have taken up space in North Bengaluru in Q2 of 2018,” Colliers said.