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Kerry Properties project on Beira Lake site remains under review
View(s):By Kapila Bandara
Hong Kong-listed Kerry Properties, a part of a large group which has interests in Shangri-La hotels in Colombo and Hambantota, said a residential and commercial property on a six-acre site overlooking Beira Lake, on Sir James Peiris Mawatha, is being reviewed considering Sri Lanka’s economic meltdown and the political turmoil.
This property project has been under review for some time.
Kerry Properties, an investor and developer of upscale properties held by a billionaire Malaysian-Chinese family, plans to build a residential tower and retail complex on the site on Sir James Peiris Mawatha.
The proposed Kerry Properties building overlooking the Beira Lake in Colombo
The Kuok Group founded by Robert Kuok Hock-Nien of Malaysia owns Shangri-La luxury hotels. The Kuok Brothers began in 1949 in Johor Bahru, Malaysia trading rice, sugar and wheat flour. Wilmar International, with business in Sri Lanka, is a part of Kuok Group.
The Colombo project’s present status is noted in the interim earnings filing of Kerry Properties to the Stock Exchange of Hong Kong on Thursday.
Kerry Properties has formed a joint venture, named Shang Properties (Pvt) Ltd, with SPI to develop the complex in Colombo in two stages. It does not mention the development cost.
The group holds an 80% stake, while SPI holds a 20% interest in the joint venture.
Based in Philippines and headed by a Kuok family member, Shang Properties Inc (SPI) was first incorporated on October 21, 1987. It was first named Shangri-La Properties, Inc., then MUI Resources Philippines, Inc., then Edsa Properties Holdings Inc., before adopting the present name Shang Properties, Inc.
Travel Aim Investment B.V. holds a 34.61% interest in the company, according to Form 17-A filings at the Philippines Securities and Exchange Commission in May.
Travel Aim Investment B.V. owns 27.150 million shares held through a broker, Deutsche Regis Partners, Inc. Travel Aim which also directly owns 1.621 billion shares is a subsidiary of Kerry Properties Limited, which is a member of the Kuok Group of Companies.
Edward Kuok Khoon Loong is chairman of SPI and also vice chairman of Kerry Holdings Limited. He has been with the Kuok Group since 1978.
The Colombo project was earlier postponed following the terrorist attacks on Catholic churches on Easter Sunday in April, 2019.
Stage one of the project in Colombo is to include a high-rise residential tower, and stage two will comprise residential and retail parts, Kerry Properties said in the filings.
Originally scheduled to be developed over a period of eight to nine years, the project continues to be postponed due to the incidents that occurred in Sri Lanka in 2019, the subsequent coronavirus disease pandemic and the political and economic crisis in 2022, Kerry Properties said. The project is currently under review, the company said.
In the interim filings of June 2020, Kerry Properties, notes that the project will be complemented by an integrated podium featuring jogging tracks, a clubhouse featuring swimming pools and other facilities, a garden, and car-parking floors.
Kerry Properties has a large portfolio of real estate (residential, office, commercial) mainly in China and Hong Kong. In 2021, 67% of revenue came from the Chinese mainland.
Kuok Khoon Hua, 43, is chairman and chief executive officer of Kerry Properties. His remuneration is HK$6 million (about Rs 277.34 million) a year. He is chairman of Kerry Holdings Limited and a director of Kerry Group Limited and Kuok (Singapore) Limited. KHL and KGL are controlling shareholders of Kerry Properties.
For the six months ended June 30, profit of Kerry Properties fell by 27% from the year before to HK$2.75 billion. Revenue dropped by 27% to HK$4.64 billion.
But underlying profit (excluding fair value change of investment properties) increased by 18% from the year before to HK$2.79 billion.
Property sales came in at HK$7.72 billion, while property rental revenue was HK$2.50 billion.
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