Renuka Holdings PLC embarks on iconic real estate development
View(s):Renuka Holdings PLC is proceeding with its ambitious project to date – The Renuka Tower – at Galle Face Terrace – after receiving shareholder approval at its EGM held on November 11, the company said this week.
The company joins scores of new apartment and office complexes coming up in the city in the next five years.
The Renuka Tower will be a modern 28 storey tower providing office facilities built on company owned land at Galle Face Terrace and Uttrananda Mawatha, Colombo 3. Once completed, the tower will have 200,000 sq. ft. of rentable office space and parking for more than 200 cars. The tower will also have corporate entertainment areas, conference facilities, dining, recreation and all the modern necessities required to create a pleasant and safe working environment.
In a media release, Executive Director, Shamindra Rajiyah said “We believe the time is right for us to develop our land bank and create a new revenue stream for the company from these resources. The group already has in operation the Renuka Building in Colombo 8, an eight storey 66,000 sq ft office complex housing group subsidiaries and many reputed tenants. Using our past experience, we aim to make the Renuka Tower a preferred business address in the city”.
The total project cost of the two stage development is estimated at Rs 3.2 billion which will be partly financed by the ongoing rights issue of Rs.
1.03 billion. The company is offering a total of 44,517,313 ordinary voting shares at Rs. 21 each and 6,428,415 million non-voting shares at Rs. 15 each to be issued. The project is expected to begin in 2015 and is planned for completion in 2018.
In its recently released 6-month ending September 2014 results, the group reported a turnover of Rs. 3.85 billion and a gross profit of Rs. 899.5 million, up 21 per cent over the corresponding period last year.