Global Towers record profit of 25% on turnover

Global Investment Lanka (Pvt.) Ltd., a BOI venture recorded a project profitability of Rs. 214 million, achieving a profitability of 25% on turnover and 33% against the investment.

On an investment of approximately Rs. 658 million and on project income of approximately Rs. 873 million, the Company's maiden project has been an outstanding financial success to the shareholders and investors UK based Sri Lankan property developer felix Selvadurai said.

This position is reflected strongly in the published financial statements of the company. Even subsequent to the tsunami, the occupancy at Global Towers Apartment Hotel was not adversely affected, and the Hotel reached an average occupancy level of 68% in the first half of the year 2005 and occupancy levels of 72 % and 76% in July and August 2005 respectively. The anticipated average occupancy levels in the future are estimated at over 75%.

According to Selvadurai the project has several remarkable features including the fact that the project commenced and was completed on target within two years. "We had no bank borrowings either locally or overseas as the equity capital that the promoters brought into the country along with the advance payments received on pre-sale of apartments was sufficient for the project to be completed without any financial hardships."

All 56 apartments were pre-sold before the building operation was completed and this assisted the cash inflows to a great extent.