My father bought land with the intention of building a house.
Literal
Father [topic-は] house [object-を] build intention [with-で] land [object-を] bought [polite-ました].
~つもりで uses で to mark the つもり phrase as a circumstance: 'with the intention of.' The full pattern [verb-dictionary]+つもり states one's plan. 土地 ('land/property') often refers to building lots in Japanese.