Rs. 2.5b investment for Mini City

Shirajiv Sirimane

A consortium of three leading corporates would invest over Rs. 2,5 billion for a combined mixed development project of their properties which are situated adjacent to each other in Colombo 2.

John Keells Holdings, Associated Motorways and Finlays Colombo signed a Memorandum of Understanding (MoU) to undertake a feasibility study for this project expected to be a landmark in the city of Colombo.

The construction of the project is expected to commence in 2010.

Chairman, John Keells Holdings, Susantha Ratnayake, expressed his commitment to the development of the city of Colombo and its infrastructure and further reiterated JKH's commitment to the Property sector. "The experiences and learning gained from the other property developments within the Group would, undoubtedly, be invaluable in making this an iconic project for the city," he added.

He said that they hope to raise funds for the project through pre sales. The first apartment tower put up by JKH is already sold out and they have 80 percent booking for their second tower. He said that they acquired Asian Hotels not because of the hotel. "It was mainly for the land value. We are optimistic of the property development sector," he said.

The combined extent of the site would be over 1,060 perches (480 JKH, 280 AMW and 350 Finlays) with road frontage from both Union Place and Vauxhall Street. The land value is over Rs. 6 billion. The development would be planned as a city within the city overlooking the waterfront of the Beira Lake and would consist of residential, commercial, retail and recreational facilities.

Chairman, Associated Motorways Group, Ajita De Zoysa, said they have confidence in the property development industry in Colombo and its tremendous potential. "The development of a fully-contained mini-city with all conceivable facilities and conveniences located within its environs and boasting of the most modern technology would be a boost and a boon to the landscape of the city."

Chairman, Finlays, Kumar Jayasuriya, said the experience and the knowledge of their parent company, the Swire Group, one of the largest property developers in the Asia Pacific region, would add great value to the project, particularly in the planning and implementation stages.

The feasibility study will include the development of the concept and the obtaining of all relevant approvals for the project. Once the commercial viability of the project is established it is expected that a joint venture company would be formed to undertake this development.