Financial Times

Carson’s sees long-term potential in property development
Equity One, a property owning and development company held by Carson Cumberbatch Group, is making a foray into property development in and around Colombo by raising Rs.1 billion through a rights issue, but is awaiting a clear political climate to pursue with their plans.

“We do not have a particular project assigned at present, because the macroeconomic situation in the country has to be conducive, but developing property is a lucrative option,” an official told The Sunday Times FT. He said the company is awaiting a clear picture on the political climate and what the new government’s economic policies are to pursue their new ventures.

The company owns the building fronting the Central Bank in Fort which they bought at Rs.320 million. Stock brokers said that the company is having a major plan for the land and possibly the building, because it is a prime location. Some stock brokers said Equity One is planning to put up a commercial and a high rise apartment complex soon at the location, but the official ruled it out as it is in a high security zone.

“The potential for the land will be when the high security zone is lifted,” he said. He said the Equity One bought the land, despite the security zone, because if and when it is lifted the property will cost more than four times what the company paid for it. “We have made a long term investment,” he added.

He said the Equity Group is looking to develop it, but has not decided whether they are going to put up a commercial complex or a condominium, but all these are strong possibilities. “We had a rights issue of ordinary shares in Equity One, to ensure that resources such as cash reserves are in place when the opportunities arise for us to develop the land,” he said. He added that the company is doing feasibility studies on the land and evaluating its potential.

“We have employed several companies to conduct feasibility studies and we are looking at a foreign party for investment depending on the outcome of the feasibility reports,” he explained. The official said that the company is also planning to develop other lands in and around Colombo as well.

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