Financial Times - Overseas Realty launches rights issue

Overseas Realty launches rights issue

Overseas Realty (Ceylon) Limited (ORCL), the majority owner and manager of the World Trade Centre building in Colombo which has a 60 percent stake in Mireka Capital Land (Private) Limited, is aiming to develop Colombo’s landmark city-within-a-city with the Havelock City project.

This is located at the sprawling site on which the former Wellawatte Spinning and Weaving Mills stood and the mega project is designed to have a multitude of commercial and retail activity. The commercial block will provide a large retail mall, multiplex cinema, business hotel and serviced apartments.

Remaz Ghouse, Director Marketing ORL said that the acquisition of Mireka will be funded through a rights issue, which has been fully underwritten by Shing Kwan Investment.

The NDB Investment Bank (NDBIB) has been appointed to act as the Financial Advisor and the Manager to the proposed placement which will be open from September 5 to 8.

The city will include eight blocks of condominium housing with 1,080 luxury apartments, a 300-room hotel, 200 serviced apartments, a shopping centre with major department stores, a cineplex, swimming pool and an international food court.

The property is accessible from Havelock Road, Skelton Road, Peterson Road and Mayura Place.

Ghouse said that the project will be constructed in phases with final completion scheduled in 2010 and will create 2.28 million square feet of real estate at an approximate total project cost of US$ 250 million. The company hopes to raise Rs 962.5 million from the rights issue.

Back to Business