Asia Capital Sri Lanka Hybrid Fund eyes investments in 4 hotels
View(s):By Duruthu Edirimuni Chandrasekera
Asia Capital Sri Lanka Hybrid Fund, bullish on Sri Lanka’s hotel sector, is keen to invest in leisure projects in the South, officials said.
The fund is managed by Asia Wealth Management Company (Pvt) Ltd, in partnership with CD One Ltd of Japan.
“CD One would set up this fund to promote investments into Sri Lanka. It is already interested in two of our hotels which are coming up in Balapitiya and Wadduwa. They are looking at investing about Rs 500 million each in these two hotels,” Stefan Abeyesinhe, Director/CEO Asia Capital, Asia Wealth Management’s parent company told the Business Times on the sidelines of launching the hybrid fund.
Asia Wealth Management, which has been appointed the managers of this pool of funds, is a boutique investment advisory unit under the Asia Capital Group. Mr. Abeysinghe said that they hope to bring in some US$3.2 million initially. “We hope to bring it by mid January,” he said.
CD One Limited is also discussing with some finance companies to buy into their equity. “The discussions are positive,” he said. He said that the fund is interested in renewable energy, agri projects and construction sector.
Mr. Abeysinghe said that their Wadduwa hotel, which is constructed by Asia Leisure (a subsidiary of Asia Capital), will consist of 33 suites and built on a 460 perch beachfront land with all modern amenities. The Balapitiya hotel has 30 rooms and is sitting on an acre, Mr. Abeysinghe said. He said that they are at present negotiating with a seller for a 4-acre property in Galle. He said that the fund is interested in a larger equity stake in the particular hotel they plan to build in this property.
“We have also seen nearly five properties in Dickwella as well and we plan to finalise that soon,” he said.
Asia Leisure is just about to secure a three acre property in Trincomalee, but will build it eventually, he added. “The South coast is more attractive and easy to manage with the new highway,” he said, adding that at present it is a more lucrative location than Trincomalee.
Under the agreement a sum of Rs. 1.5 billion will be collected from Japanese corporates and high net worth individuals based on an information memorandum prepared by Asia Wealth Management covering the spheres of private equity, listed equity and fixed income. Hence the fund would be invested in the Colombo Stock Exchange, potential private equity projects, treasury bills, bonds and corporate bonds.
Follow @timesonlinelk
comments powered by Disqus