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More than 50 prime lands to be leased to raise US$ 6bn
Amidst lukewarm interest in what the Government had hoped will be one of its key means of attracting revenue, more than 50 prime lands in Colombo city and outstations are being offered on lease for local and foreign investors in a move to raise at least US$ 6bn.
The lands will be offered on Public Private Partnerships or joint ventures with the State holding 51 percent of shares, Urban Development Ministry Secretary Sirinimal Perera told the Sunday Times.
Some of the lands had previously been offered out without takers while additional properties have also been identified. Earlier expectations that a party named M/S Shumookh Investment and Services (SIS) of the Sultanate of Oman would take up the nine-acre Chalmers’ Granary land and the Air Force Headquarters have not materialised.
These two properties are also now on the list along with Summit Flats in Colombo 5—for which a Dubai investors had expressed interest—where ten acres are on offer for luxury apartments; six acres each in Vauxhall Street and D.R. Wijewardene Mawatha in Colombo; the Nugegoda and Kollupitiya markets; the Pettah World Market with four acres; three acres each in Rajagiriya, Denzil Kobbekaduwa Mw and Battaramulla; and lands located in Nuwara Eliya and Kandy. Fifty-five acres in Ekala, too, are available.
A Korean investor has come forward for the Welikada prison property, proposing to build the proposed new jail in Horana for relocation in exchange for the land on which the present facility stands.
The terms available are 33, 50 or 99-year leases for mixed development projects, residential towers, hospitality and leisure projects, logistic hubs and multi-storied car parks among others.
The Urban Development Ministry will facilitate loans and support for the respective projects after the leases. If, however, there is no progress after two years, the land will be taken back.
Despite aggressive marketing, however, interest has been lacking. One of the reasons is because of competition from Colombo Port City which also has prime property on offer with all supporting infrastructure in place, authoritative sources said. Meanwhile, the residential apartment market in Colombo is also now saturated.
However, the UDA is holding another investment forum on November 25 at Water’s Edge in Battaramulla to “energise Sri Lanka’s economy”. It will showcase all available prioritised real estate projects in the categories of mixed development, residential tower development, hospitality and leisure development, office tower development, logistic hub development, and multi-storied car park development.
On Friday, Finance Minister Basil Rajapaksa presenting the Budget for 2022 declared that the Government will look into whether conditions currently imposed to facilitate attraction of foreign direct investment should be relaxed. He also proposed that investment through local and international sources into mixed development projects on Railway Department lands should be considered.