SunwayMas to undertake RM250m project in Sri Lanka
A joint-venture company will be incorporated in Sri Lanka, with SunwayMas having 65% stake, and remaining by Dasa Group.
SunwayMas will fund its investment in the JV company through bank borrowings and internally-generated funds, it said in a filing to Bursa Malaysia.
At a press conference earlier, Sunway Holdings managing director Yau Kok Seng said it hoped to launch the project, which is expected to generate 20% profit margin, by the second quarter of 2011 after obtaining all approvals.
He said the development entails a 34-storey building comprising 70 commercial and 180 residential units on prime freehold land and mixed-use zone. It will be completed in 2014 and will enjoy a five-year tax holiday from then onwards.
"The project, sitting on a 0.461-hectare site is located a mere 5km from the Central Business District of Colombo and has potential to generate a total saleable area of at least 380,000 square feet," he said.
Yau said residential properties in the project were priced at US$200 per sq ft onwards while commercial units at US$350 per sq ft.
Future expansion
In the filing to Bursa, Sunway Holdings said it was constantly on the look-out for new investments and with its 10 years of experience in India, the opening of the Sri Lanka economy to foreign investment and expertise allows expansion of Sunway’s geographical footprint to Sri Lanka, which has a higher foreign currency rating as compared to India.
"The proposed development enables Sunway to expand into an exciting new market and increase the size of its landbank for the purpose of property development," it said.
With the latest foray, Sunway Holdings' land bank amounts to 174ha, with potential gross development value of RM2.6 billion, which will be developed over the next three years.
Meanwhile, SD Gunadasa, chairman and founder of Dasa Group of Companies, said the company looked forward to more collaboration with Sunway Holdings for its future expansion.
"While the Sri Lankan property market gears itself for robust growth in the next five years, international collaborations with premier property players such as Sunway Holdings will contribute immensely to raise the standards in the industry as well as create new benchmarks," he added.
- Bernama
