News
Gota tells Packer’s casino to shift; no response from investors
View(s):Australian casino mogul James Packer’s Sri Lankan partner has been asked to shift the location of the proposed resort and gaming centre from the car park in front of Lake House in Colombo Fort, to another property along D.R. Wijewardene Mawatha. The land currently earmarked for the building is on the corner of D.R. Wijewardene Mawatha and Chittampalam A Gardiner Mawatha.
It is not clear whether the Urban Development Authority (UDA) request had come before or after the project was gazetted on July 18 this year. However, the partners are now in a quandary having already spent around US$ 20 million on the design of their integrated resort, authoritative sources said.
Defence and Urban Development Ministry Secretary Gotabaya Rajapaksa confirmed the report. He said it was “strongly suggested” to Rank Holdings Chairman Ravi Wijeratne that the project company should choose an alternative location on D.R. Wijewardene Mawatha. The letter was sent out two weeks ago, he added.
Rank Holdings is the local partner of Mr. Packer’s enterprise, Crown Limited. Together, they have formed a project company called Lake Leisure Holdings (Pvt) Ltd to set up and operate an integrated resort which includes a 400-room hotel with meeting, convention and gaming facilities.
Mr. Rajapaksa said the reason behind the UDA’s request was aesthetic. He said that, through the World Bank, he had obtained the services of an expert to advise him on how best to develop the Beira Lake and surrounding areas. “He didn’t know about Mr. Packer or anything,” the Defence Secretary explained. “He showed me this land and said that, if you’re building anything on it, it must be in the form of two towers so that you can see the Beira Lake through them. He said you must also especially be able to see the Lotus Tower which is now coming up.”
The transmission tower is set to be the world’s fifth tallest and is being built on D.R. Wijewardene Mawatha. At 36 storeys high, Mr. Packer’s hotel will dominate the skyline in that area. “We are suggesting to them to shift to another location on D.R. Wijewardene Mawatha. It won’t make much difference if they have to shift a few yards. The UDA’s old plan was also to have all these things (casinos) along D.R. Wijewardene Mawatha,” Mr. Rajapaksa said.
There are other locations along the avenue which could be used by Lake Leisure Holdings, the Defence Secretary said. “There is enough land, some of which is actually state-owned,” he pointed out. This includes properties owned by the UDA, Sathosa, Fisheries Ministry and Ports Ministry. The existing land was obtained by Mr. Wijeratne on a short lease several years ago to build a multi-storey car park and not a resort, Mr. Rajapaksa said. “This was done before I took over (UDA),” he said. “But even at that time, the UDA had categorically told him the view cannot be blocked.”
If Lake Leisure Holdings did not want to shift the location of the resort, they must split it and make it into two towers, the Defence Secretary asserted. “They have that option,” he said. In an interview with the Sunday Times earlier this year, Mr. Wijeratne said he had acquired the 384 perches of land on a 50-year lease at Rs. 7.2 million a perch. Their development plans included a Las Vegas-styled medium-sized dancing fountain and a walkway around the Beira Lake.
It is uncertain what the Rank Holdings and Crown will now do. Mr. Rajapaksa said he had not received a response. “I don’t know what they have planned or whether they have even designed the building,” he noted. “It is up to them to decide. The plans must come to the UDA to approve. They haven’t come yet.”
Follow @timesonlinelk
comments powered by Disqus