Zoom Developers pays Rs.5,550m for prime Colombo property

Zoom Developers (India) has made the highest up front payment in its bid for acquiring the lease of a prime property at Braybrooke Place, Colombo 2, the sum offered being Rs. 5,500 million.

The 12 acre 13.01 perches property belonging to the Urban Development Authority had several investors chosen by a project committee after Government called for Expressions of Interest in February this year.

They were Zoom Developers (India), Ceylinco Consolidated, John Keells Holdings and Aitken Spence Group.

Ceylinco Consolidated, though it indicated a payment of Rs.6583.9 million, had offered to pay only 20 per cent as the upfront payment, , which was only Rs.1316.78 million and a further 30 per cent after three years and balance after six years.

The net present value of the Ceylinco Consolidated offer as per an interest rate of 12.5% p.a. is only Rs.4,117 million, compared to the Zoom Developers offer of Rs.5,500 million. They had offered a much higher annuity payment, with 10 per cent increase every 10 years.