Financial Times

AHPL in new $40 mln high rise condo at Crescat
John Keells Holdings, one of the largest corporate real estate owners in the city, has announced plans to build another luxury high rise apartment complex on its prime property at ‘Crescat City’ in Colpetty at a total cost of $40 million. The project, to be done by JKH subsidiary Asian Hotels and Properties Ltd., follows closely on the group’s success with its ‘Monarch’ luxury apartment block on the same site which has been fully-booked and on which construction commenced in early 2005.

“We believe that, from the response we got for our ‘Monarch’ apartment complex, there was demand for another high-end apartment complex,” JKH deputy chairman Ajit Gunewardene told The Sunday Times FT. “This is part of our property development strategy. We would be doing the project by our selves with technical expertise from outside where necessary.”

AHPL has informed the Colombo Stock Exchange that its Board of Directors has approved the new condominium development within the 12-acre property known as ‘Crescat City’ subject to the necessary approvals being obtained. Crescat City, located on a five-acre plot of land is already proving to be a “lucrative investment” for the group, according to its annual report. The Residencies at Crescat City, a 152-luxury apartment complex available for sale or lease, primarily focuses on the expatriate community in Sri Lanka as well as the affluent investors both locally and internationally.

Gunewardene, who is also a director of AHPL, said the new condominium would have 34 floors and 175 apartments. Total cost of the project including land would be $40 million. Construction is expected to start in the first half of 2006 and take two and a half years. The Monarch project that is now under construction is expected to be completed in the middle of 2007.

JKH has been evaluating the potential of its big land bank consisting of prime property in Colombo as well as outside the city and formulating a strategy to exploit it. A team was appointed last year to formulate future strategy to maximise the returns from these holdings. The conglomerate has about 30 acres of prime real estate in the heart of Colombo that was valued at close to Rs 3 billion in 2003.

Gunewardene said JKH had not yet firmed up plans for the Elephant House property. This eight-acre property became available for development after relocation of the Ceylon Cold Stores soft drinks production facility to Kaduwela.

Overall, JKH has about 47 acres of land in Colombo and 284 acres outside of Colombo, which includes 216 acres in hotel properties. JKH’s real estate team has been studying the real estate market and trends in order to formulate a strategy to exploit the full potential of its valuable real estate assets.

Back to Business