Developer swallows Rs. 500 m

Ravi LADDUWAHETTY

Controversy looms over the manner in which property developer Premier Pacific Ltd has collected Rs. 500 million in advance from prospective apartment owners at the premises at the Topaz Towers but is unable to complete the project due to shortage of funds.

Buyers who have paid the funds in advance have now panicked.

Buyers believe that the project developer will neither give them the money nor the apartment.

However, the contractors to the project- Tudawe Brothers believe that the shell of the project is around 50-60% complete.

The date of the project completion cannot be announced as the project has run short of funds and there is a likelihood there that a new consortium of investors will take over the project, Tudawe Brothers Director Amal Tudawe told Daily News Business yesterday.

The project started in January 2004 where the approved date for the end of the construction approved was end 2004, due to fast track approvals from Government and diplomatic missions. The Topaz building has reached the 19th floor out of the 20 floors and accordingly only the 20tb floor roof-slab has to be constructed to complete the basic super structure.

The remaining work is less than 20% and covers glasswork, external and internal finishes, generators, floor tiling and final finishing work of electrical and mechanical aspects. The time for completion is six to seven months.

The company has obtained all necessary approvals and there is a need only to amend the approvals granted to cover the redesign of the building consequent to the change of residential apartments to open-type office space.