RIL Property to develop United Motors land in Colombo 2
Commercial space owners, RIL Property PLC which bought 30 per cent in United Motors PLC on Wednesday morning, with officials saying that the latter’s potential for property development is large, will be developing the 280 perch block adjacent to their Parkland building in the long term.
“We will definitely capitalise on the land bank. We now own an ‘island’ really because there’re roads all around us. It makes perfect sense (this transaction) as we are also consolidating our land,” Hiroshini Fernando, CEO RIL Property told the Business Times. She added that it’s a good fit as all major developments were happening in Colombo 2.
United Motors PLC’s largest shareholder M.A. Yaseen sold some 30.27 million shares in United Motors PLC which traded in two large parcels on the Colombo Stock Exchange (CSE) at Rs. 78. The first parcel was 20,271,000 shares and the second was 10 million shares. Mr. Yaseen had 61.20 per cent in United Motors PLC, and is the largest shareholder. Mr. Yaseen continues to hold a 31.2 per cent stake in UML. He also owns 16 per cent stake directly in RIL. The Yaseen family owns 74 per cent in RIL Property.
Ms. Fernando added that the stake represents 30 per cent of the 61.2 per cent voting rights held by Mr. Yaseen in UML which has agencies for Mitsubishi and Perodua.
While the property in Colombo 2 is lucrative, the total land base that UML has is 17 acres.