Ceylinco Housing to raise Rs.500 m for expansion

CEYLINCO Housing and Real Estate Co Ltd (CH & RE) has performed exceptionally well in the six months period ended September 30, 2005 recording their best ever profit of Rs 52 Mn and has already circulated the quarterly to the shareholders, Ceylinco Housing said yesterday.

The Board of Directors has announced a Bonus Issue of four new Ordinary Shares for every five Ordinary Shares held from the revenue reserves as at March 31, 2005.

Padmini Karunanayake - Deputy Chairperson and Chief Executive Director of CH & RE commenting on the Company's decision to raise Rs 500 Million by way of a Non-Voting share issue indicated that the Board of Directors are very confident that the growth in the Housing Industry should be well supported by the issue of these shares.

Ceylinco Housing and Real Estate has planned several housing projects in Colombo and suburbs and requires capital infusion for the purchase of these prime properties. For this purpose, the company has decided to raise Rs 500 Mn to fund its future expansion.

CH & RE also will introduce these houses with a very attractive financial solution to buyers to enable them to have a long period of purchase settlement.

The bullish sentiment of the Directors is very evident by the success of its flagship project "Trillium Residencies" constructed by one of its subsidiaries-Ceylinco Condominiums Limited which, has pre-sold 145 apartments of the 180 offered for sale.

The Directors have proposed to convene an Extraordinary General Meeting to seek the sanction of the shareholders for the issue of Bonus and Non Voting Shares.