Krrish to start Phase 1 of the long-delayed mixed development project
Indian real estate Company Krrish Group has forwarded the plan for the first phase construction work of its long-delayed US$650 million mixed development project at 4.3 acre British era heritage Trans works building site in Fort, a top official of the Board of Investment (BOI) said. The BOI is in the process of studying the proposed plan under the Colombo Krrish square mixed development project including the investment for this purpose, newly-appointed BOI Director General Duminda Ariyasinghe told the Business Times.
He added that some matters relating to the final payment of the land lease should be settled by the company with the Urban Development Authority (UDA) and the company could go ahead with the project by making necessary investments. The Krrish Transworks Colombo (Pvt) Ltd had earlier planned to build four towers – the tallest tower with 85 floors, the second 80 and the other two -55 floors each, in five million square feet of residential, commercial space and a hotel.
The project has been downsized from its earlier status to two towers under the present circumstances, official sources revealed.
The construction of the first phase is expected to begin shortly, a UDA official said. He said that the under the first stage the company will reconstruct the Transworks Building in Colombo to international standard to set up an upmarket shopping area. According to the proposed new plan this will be an international style shopping mall in Sri Lanka, he disclosed.
Krrish Transworks Colombo is now in the process of selecting an international contractor from already short listed three reputed foreign companies, a company official said adding that an internationally managed hotel chain has agreed to partner this project. The company has already paid Rs.4.4 billion out of the full lease payment of around Rs.5 billion to take over the 4.3 acre land on 99 year lease and the lease agreement with a validity period of five years was signed recently, a senior UDA official confirmed to Business Times. Under this agreement, 3.7 acres of land had been cleared for Krrish Group to launch their Krrish square project in Colombo, he added.
The company had initially deposited a sum of Rs. 499.5 million being 10 per cent of the total lease premium as a commitment fee on 14th September 2012. The Indian investor has not paid the balance payment of Rs. 589.7 million which has now ballooned to over Rs. 800 million with interest, the UDA official alleged but the company official said that all the payments have been settled now. The project has been mired in controversy including allegations of payoffs to key officials among whom is former Securities and Exchange Commission Chairman Nalaka Godahewa, who was released from remand custody on Thursday over a separate case of alleged misuse of public funds.