In his recent interview with Faraz Shauketaly, Hardy Jamaldeen, Executive Director and Co-Founder of Steradian Capital Investments, shared his candid insights on the current state of Sri Lanka's economy, focusing on the opportunities in the real estate and tourism sectors.

Jamaldeen did not shy away from acknowledging the challenges, particularly in the real estate sector, where slow-moving bureaucracy can delay projects and deter potential investors. However, he remains optimistic about the long-term potential for growth. “There are issues, no doubt, but it’s not all doom and gloom,” he said. “Our focus has been on refurbishing existing properties instead of new builds, which has allowed us to bypass some of the bureaucratic delays and deliver results more quickly.”

When it comes to Sri Lanka’s tourism recovery, Jamaldeen is hopeful. “Tourism is rebounding strong, we had 2.3 million tourists in 2023, and with the right infrastructure in place, there’s no reason we can’t reach 5 million tourists in the next couple of years,” he noted. 

Jamaldeen also highlighted the importance of creating a more investor-friendly environment. He advocates for regulatory reforms that would streamline processes for both local and foreign investors, which would boost real estate development and overall economic growth.

Looking ahead, Jamaldeen is hopeful that Sri Lanka will prioritize policies that enable quicker development, improve tourism infrastructure, and create a regulatory framework that encourages investment. With the right support, he believes Sri Lanka can overcome its challenges and unlock its full potential.


Hardy Jamaldeen, shared an insightful perspective on Sri Lanka's economic recovery in a recent interview on TURNING POINT.


“There’s Light at the End of the Tunnel” - Hardy Jamaldeen on Sri Lanka’s Economic Recovery

![Cover (s)](//images.ctfassets.net/dlnoftlqg1xi/3KgXXc7kKR1cPikpY0enuh/342ed55202a65dcf561faf759c5114a2/Cover__s_.jpg)

# Political Situation

The leader of the house and a member of parliament, Dinesh Gunawardena from the Sri Lanka Podujana Peramuna, who was the former minister of Public Administration, Home Affairs, Provincial Councils, & Local Governments was sworn in as the Prime Minister of Sri Lanka under the presidency of Ranil Wickremesinghe. Thereafter, an 18-minister interim cabinet was formed. However, worryingly an all-party government could not be formed as the parties could not come to a common consensus.

There was no further civil unrest after the appointment of the new President. However, protestors were removed from the Presidential Secretariat office, its main entrance and around the office in the Colombo Fort. Following this, a tense situation prevailed in the early hours of July 22nd. 
We think much will depend on the delivery of fuel and gas to the general public. If the mobility pertaining to everyday living is assured, we think the general public will accept the incumbent President and the Country can move forward. In order to control the fuel queues and for efficient distribution, the Power and Energy Ministry launched the National Fuel Pass, where people can register through an online portal in order to receive a weekly fuel quota.

---

# IMF

Staff-level discussions with the IMF are ongoing with officials within the Government of Sri Lanka and their advisors Lazard & Co and Clifford Chance. An announcement from the IMF will only be made after the debt restructuring negotiations have been concluded, and as such, a proposal for the debt restructuring was to be presented by August to obtain an Extended Fund Facility (EFF) agreement. 

The figures constantly change, however Sri Lanka hopes to receive a total of USD 3 billion from an EFF agreement. Experts are of the opinion that Sri Lanka will need USD 7-8 billion per annum during 2023-26 period from an IMF agreement. Analysts expect to see a recovery in remittances and tourist inflows along with FDIs from 2024 onwards.

In early July, the IMF announced that it hoped to resume high-level discussions; however, on July 25th, these procedures were halted and delayed due to the high levels of unrest that took place. Hence a precise time frame cannot be predicted for the IMF drawdown.

---

# Interest Rates Inflation & Currency

## Interest

The current lending facility rate stands at 15.5% as opposed to 14.5% in April of 2022 as the Central Bank of Sri Lanka (CBSL) further increased their policy rates by 100 bps. The LKR one year bond provides a yield of 26.5%.

## Inflation

Between April 2022 and June 2022, inflation increased by 33.8% to 58.9%. In May, the CBSL suspended open account transactions for imports; this is expected to create a significant shortage of commodities in the coming months. Banks have been further requested to prioritize the allocation of forex for essential medicines, food items, fuel and gas imports.

## Currency

Gross official reserves, as at end June 2022, were estimated at USD 1.9 billion, including the swap facility from the People’s Bank of China equivalent to around USD 1.5 billion, which cannot be used as it is subject to conditions. Additionally, the Sri Lankan Rupee has depreciated by 20.4% from LKR 299 to 359.88 per USD during the quarter ended June 2022.

---

# Company performance

## Revenue

Hardy and I would like to report that the consolidated revenue increased by 263% to LKR 491 million | USD 1.36 million in the quarter ended 30th June 2022 compared with LKR 135.3 million | USD 0.37 million in the corresponding quarter ended 30th June 2021. The improved revenue was predominantly due to the increased contributions from Mulberry residential apartments, increase in rental income from HQ Colombo and Unity Plaza. Unfortunately, due to the current situation in the country a significant contribution has not been made by the leisure properties to our total revenue.

The revenue for the first half of the year increased by 130% to LKR 1.02 billion | USD 2.83 million as at 30th June 2022 compared with LKR 444.9 million | USD 1.23 million during the corresponding first half of the year ended 30th June 2021. 

## Expenses/ Finance Cost

The Group incurred a loss of LKR 235.4 million | USD 0.65 million for the June 2022 quarter compared with the loss of LKR 71.7 million | USD 0.2 million reported in the corresponding quarter of the previous year. A substantial portion of our revenue comes from unit sales at Mulberry Residencies. Correspondingly 43% is attributed to our operating cost. We can expect an improvement in this margin upon the continued sale of the residue stock and the completion of the project in December.

Our interest rates have increased significantly by c. 18-24% compared to the previous quarter . Most of our debts are pegged to the AWPLR and we expect an increase in the finance cost due to the tightened monetary policy.

## Balance Sheet

Total Assets have not changed significantly from LKR 18.5 billion | USD 51.4 million at the end of March 2022 compared with LKR 18.4 billion | USD 50.9 million at the end of June 2022. Total Non-Current Assets recorded a marginal 0.2% increase to LKR 15.9 billion | USD 44.28 million compared with LKR 15.9 billion | USD 44.19 million at the end of March 2022.

Total Current Assets showcased an 8% decrease to LKR 2.3 billion | USD 6.35 million compared with LKR 2.6 billion | USD 7.18 million recorded respectively during the comparable quarter ended 31st March 2022. The marginal increase in Current Assets was primarily due to the decrease in inventories.

## Share Price

LRI’s share price closed at LKR 12.00 as at 30th June 2022. The share price reached a monthly high of LKR 15.70. LRI’s share has increased by 4.3% while ASPI declined by 9.0% for the month of June. Further, LRI’s share decreased by 10.4% during the quarter under review while the ASPI declined by 13%. 

Comparatively, the MSCI Emerging Market Index decreased by 20% during the quarter ended 30th of June 2022 while the MSCI Frontier Market Index declined by 19%.

LRI's quarterly share turnover declined this quarter from LKR 747 million | USD 2.07 million in the quarter ended March 2022 to LKR 64 million | USD 0.18 million. The prevailing economic climate has significantly attributed to the decline in share turnover.

![Newsletter Graphs 01](//images.ctfassets.net/dlnoftlqg1xi/3uwc2OtLsqfymZJGVuQNLq/5d765e7b15a96d5ee9ae1d1d86edded7/Newsletter_Graphs_01.jpg)

## Free Float

As of 30th June 2022, the public float stood at 30.3% and it remains unchanged compared to the last 6 months.

## Year-end Financials

We are currently awaiting the new valuations of On’ally PLC to be approved by the Board to finalize LRI's financials.

*FX Rate – LKR 361.09 as at 25.07.2022*

---

# Asset Management Update

## On’ally PLC
*Owner of Unity Plaza Sri Lanka’s one-stop shop for IT equipment*

We have achieved an average price per sq ft of LKR 1,100 | USD 3.05. We are pleased to report that we have signed 3 new lease agreements and 1 lease renewal during the quarter. Rental arrears as at 30th June 2022 was LKR 34.1 million | USD 0.09 million. Upon revising the property’s ERV, we will see a 52% increase in the annual rentals in the forthcoming financial year.

Furthermore, funds available are invested in money market instruments and fixed income securities in order to benefit from the rise in interest rates.

The civil work necessary for the installation of the glass façade is  under way. The total of the material cost is LKR 67 million | USD 0.33 million. November is the anticipated completion date for the project. Furthermore, the new valuation is yet to be approved by the Board, and as such, accounts for the financial year ended 31st March 2022 is yet to be finalized.

## HQ Colombo
*Working lifestyle*

We are pleased to inform that 87% of the space is occupied. All of the rent-free periods offered to tenants as incentives have ended. As of June 30, 2022, there was LKR 14.1 million | USD 0.04 million in rental arrears. The Lease Agreement with Skyparc was signed during the quarter, and a new rent record was set at LKR 577.74 sq ft pcm / USD 1.6 sq ft pcm. 

[Click here](https://my.matterport.com/show/?m=PHiXB35rS6o) to view the 3D virtual tour of the property.

Further, we increased the service charge for the provision of fuel for the generator and we are pleased that the tenants have accepted the increase. 

We are creating HQ's retail presence on the building's rooftop. We are pleased to announce that the steel roof structure, which cost LKR 2 million | USD 5,539 in total, is complete. This space will allow the tenants to have some outdoor space and dine on the rooftop with scenic views of Colombo. We think this will improve HQ’s overall offering.

## Mulberry Residence
*Affordable housing for the people with convenience*

The sales campaign is going well and 88 flats have been sold so far (73%). We have signed 85 Sales & Purchase Agreements out of the 88 units sold.

[Click here](https://my.matterport.com/show/?m=zuWvzjdKbNv) to view the 3D virtual tour of the property.

To combat inflation, we have raised prices on two occasions, initially by 17% in January and a further 25% in April. Our sales staff has been successful in closing 23 units within the past six months. That said, the country's current economic position had a significant impact on the number of site visits that took place between April and June 2022 and accordingly,  the average site visits per month stood at 8 (down 75%). This was predominantly due to the fuel crisis as travelling was restricted and clients were unable to visit the property. Encouragingly, we sold two units in July at the new prices and we hope to continue this progress into August and September. It has been muted that VAT will be introduced in October on apartment sales. 

Power outages and supply shortages have had a significant impact on construction. These unforeseen circumstances resulted in us pushing back practical completion until December. However, I am pleased to report that we have managed to place deposits on the majority of the fixtures and fittings and therefore, have fixed the USD price on most imports. 

## Leisure Sector-W15
*At your service*

The current economic crisis has a significant negative influence on Sri Lanka's hotel industry. In order to promote local sales and raise revenues and occupancy rates, we are continuing our marketing efforts.

In the first quarter of 2022, sales at our highest-earning leisure property, W15 Weligama, reached LKR 76.2 million | USD 0.21 million. We also noticed an improvement in occupancy rates due to factors including increased local and international travel. 

However, occupancy rates have considerably dropped, resulting in this quarter's earnings of only LKR 30.2 million | USD 0.08 million.

Due to the political turbulence and civil disturbance that occurred on the island, our largest markets are now issuing travel advisories to tourists who want to visit Sri Lanka. There has been a significant decrease in the monthly average of tourist arrivals from 227,000 during the pre-covid period to 68,000 in 2022.  Despite 126,043 tourist arrivals during the quarter ended June 30, Sri Lanka's already fragile tourism sector may get worse due to the current economic crisis and travel advisories against the country.

It is not viable to commence the Surf Retreat project in Ahangama until the economy stabilizes.

By way of reminder, we have W15 Ambalangoda and W15 Yala in the pipeline to launch when the market has recovered and tourism picks up.

## Amtrad
*Renowned construction prowess*

The first phase (Colombo-Mirigama) and the  second phase (Mirigama-Kurunegala) of the Central Expressway have been completed. On January 15, 2022, the project's second phase was made accessible to the general public. This will have a positive impact on Amtrad’s value as it is located with close proximity to the Expressway with improved connectivity and easy access to main cities in the country.

## Land Banks
*1,600 units in the development pipeline*

It must be noted that, the three landbanks, namely, 285 Darley Road (Pvt) Ltd (market value of LKR 4 billion | USD 11.07 million), Baseline Holdings (Pvt) Ltd (market value of LKR 1.8 billion | USD 4.9 million) and Mulberry Ja-Ela (Thudella Holdings (Pvt) Ltd with a market value of LKR 546.4 million | USD 1.5 million) continue to be on our books for the future. 

We have obtained preliminary development permits from the Urban Development Authority (UDA) pertaining to the aforesaid landbanks  and  we look forward to developing or selling the landbanks when the opportunity presents itself.

---

# Special Announcements

The company would like to welcome our latest recruits, Kosala Weerasooriya, to our accounting team and Shamir Mohideen as our in-house photographer. We would also like to extend our congratulations and appreciation towards Johann Ratwatte, who has been recognized as the ‘employee of the quarter’ for his fantastic work as our Asset Manager.

## A fresh new look

In our journey towards the future, Lanka Realty Investments is excited to
announce our newly redesigned and refined  logo along with the launch
of our new website at [www.lriplc.com](https://www.lriplc.com). 

![Newsletter Graphs 05](//images.ctfassets.net/dlnoftlqg1xi/6K6QOHVREpgHz1w655gNhE/643fea498eba8c22a41416a62c0a1159/Newsletter_Graphs_05.jpg)

*The new logo shows two parts of a circle. One part is the customer and the other the company. When these two parts unite, it forms one complete circle (two spaces separating the letters for easy understanding). The process of real estate results in an agreement with two parties coming together as one, which is represented by the two sections 'L' and 'R'.*

Further to our political update please find attached our asset management update and issues at large in Sri Lanka. 

Asset Management Update - August 2022

![Hardy OnAlly copy](//images.ctfassets.net/dlnoftlqg1xi/1UAfqsdvIBaaMou0RDvRbG/92ecc70c1183d58d3385ca623c4acc9f/Hardy_OnAlly_copy.jpg)

M.H. Jamaldeen, Managing Director of On’ally Holdings and Tharsini Sarveshwaran, Executive Director – Operations, share insights into the journey, growth and prospects of one of Colombo’s iconic landmarks, Unity Plaza.

__How has On’ally Holdings PLC’s journey evolved since its founding in 1982? And what key milestones have contributed to the company’s success in the real estate market in Sri Lanka?  __

In 1982, Mr On’ally Gulam Hussain founded On’ally Holdings, responding to the government’s initiative to redevelop key areas in Colombo. With an initial capital of Rs100 million, he embarked on a groundbreaking mixed-use project, which was truly transformative. At that time, the Sheraton area lacked shopping centres or mixed developments like Unity Plaza, Liberty Plaza, and later, Majestic City. These mixed-development projects later on would emerge as distinctive additions to Colombo’s urban landscape.

Unity Plaza was a pioneering effort in the realm of public-private partnerships with the Urban Development Authority (UDA). The UDA invested funds into the project, a collaboration that stands out given the rarity of such government investments today. The project was also closely linked to the Board of Investment (BOI), which provided tax incentives and other advantages to attract critical investments.

Without the invaluable support from these entities, Unity Plaza would never have become a reality. Over time, it evolved into a hub for various shops and offices, including government agencies, Janashakthi, and immigration offices. At one point, even the Western Province Governor’s office briefly operated from this location. Organically, IT retailers became the dominant presence in the retail segment over the years.

Recognizing Unity Plaza’s potential, Lanka Realty Investments leveraged our extensive property expertise as we set our sights on acquiring Unity Plaza. In 2020, we acquired a controlling stake of 51%, driven by our goal to replicate a successful strategy which we had implemented in the UK. This strategy involved strategically clustering retail tenants to create a mutually beneficial environment.

In Sri Lanka, there is a prevailing perception that neighbouring businesses are competitors. However, Lanka Realty aimed to break this mindset by creating an ecosystem where the presence of similar businesses attracted more customers, benefiting everyone involved. We planned to expand this model from the lower ground, ground, and first floor, which boasted the highest average rental income, to encompass five floors of retail.

To achieve this vision, we had to address a significant challenge: vertical movement within the building. The existing configuration featured only one escalator connecting the ground and first floor; forcing customers to navigate across the building and take elevators to access higher floors. This hindered the customer shopping experience journey within the retail centre.

Our solution was the installation of additional escalators to seamlessly connect all five retail floors. We had to reengineer the building design and overcome various structural challenges. The final result was successfully cutting through the building’s core to accommodate new escalators, significantly enhancing the overall shopping experience at Unity Plaza.

![Echelon-gray-Onally](//images.ctfassets.net/dlnoftlqg1xi/2n1W64Qvzqh8GwhJFBSJrK/8b22eaaedf1d043e6f46759e713ba52a/Echelon-gray-Onally.jpg)

*Tharsini Sarveshwaran, Executive Director – Operations*

__And going back to the point where you said that a predominant number of tenants are from the IT and computer industry. What do you think incentivized this majority of IT and computer retailers?__

In reality, tech and IT companies stumbled upon the fact that Unity Plaza had organically become the go-to destination for IT needs across the country, entirely by chance. People were naturally flocking here for IT services, and this realization led us to adopt a more structured approach through the implementation of scientific retail cluster design.

Through our market research, we discovered that approximately 60-65% of the country’s IT retail and distribution were centred at Unity Plaza. Our objective was to elevate this figure to 90%. To achieve this goal, we conducted in-depth research to identify the remaining 15-16 key players we needed to bring on board. Our approach was strategic, as we invited them to occupy vacant spaces in a targeted manner. Assessing each tenant’s potential rental capacity became a pivotal consideration, emphasizing the importance of unit sizing.

In line with our vision of Unity Plaza as a focal point for IT services, we made deliberate changes. We removed the outdated bookshop, which no longer aligned with our goals. We relocated Perera and Sons, placing a firm emphasis on establishing Unity Plaza as a dedicated destination for IT enthusiasts. For those seeking food options, we designated a separate food arcade on the second floor, catering to their needs without diluting the primary IT focus.

__What are your plans for this complex?__

Looking ahead, our vision for Unity Plaza expands to encompass the creation of a comprehensive ecosystem. Our plan involves repurposing upper floors by removing certain offices to make room for an auditorium. This auditorium will play a crucial role as a venue for tech launches and tech training, addressing the current shortage of suitable training spaces for both our home-grown start-ups as well as the international tech companies which operate in the market.

Additionally, we envision the introduction of an organized storage facility that will greatly benefit tenants with limited shop space. Our storage facilities will allow for efficient management of equipment and supplies through trackable software, ensuring that stocks are well-maintained and safe. This concept is designed to help reduce the costs associated with acquiring larger shop spaces solely for storage purposes.

In line with our ecosystem-building initiative, we have ambitious plans to establish IT training schools, providing further support for IT enthusiasts and professionals. We are also set to allocate an area within Unity Plaza for angel investors and startup businesses, offering affordable rents to promote the growth of new ventures. Our overall vision here is to provide the resources necessary to nurture, develop, and build the IT sector within the country. This sector is important for the future of Sri Lanka, and we want to do our part in nurturing a thriving ecosystem which pushes this.

Our ultimate objective is to attract young startups and entrepreneurs, fostering a dynamic and vibrant atmosphere within Unity Plaza. This approach benefits not only these startups but also draws in a diverse crowd of individuals who can contribute to and support the existing tenants.

Returning to the concept of retail clustering, we are meticulously organizing high-end gaming shops, computer and laptop retailers, repair shops, and accessory stores into specific designated areas. This strategic organization ensures that customers and visitors know precisely where to find what they need, greatly enhancing the overall shopping experience. The meticulous planning of retail clustering stands as a crucial and integral component of our overarching strategy. 

On'ally Holdings, the parent company of unity plaza, builds an ambitious tech ecosystem encompassing retail and office spaces.

Unity Plaza: The OG Of The Tech Real Estate Market

Lanka Realty Investments PLC, subsequent to its acquisition of a 51% stake in On’ally Holdings PLC, is the the owner of Unity Plaza with the Urban Development Authority.

“We have now reinvested Rs. 400 million for this refurbishment adding several new features like a separate floor for storage, auditorium, and facilities for startups,” said Lanka Realty Investments PLC Chairman Hardy Jamaldeen. The facility has been expanded to include 5 storeys of retail space and 5 floors of modern offices, enhancing overall shopping and work experiences, whilst increasing the available floor space. Innovative additions like escalators and other modern amenities.

Presently, Unity Plaza is proud to serve 65% of the nation’s IT needs, with ambitious plans to expand that influence to command 90% of the market. “Our vision is in alignment with the government’s broader plans for modernization and repositioning Sri Lanka as a premier IT hub.” Unity Plaza represents something more than an IT mall; it is a landmark, an intrinsic part of Sri Lanka’s IT culture and the embodiment of a quest for trailblazing transformation. The roots of Unity Plaza date back to June 25, 1982, when On’ally Holdings Ltd was established. In 1991, the company made history by becoming one of the first public-private partnerships in Sri Lanka when it was listed on the Colombo Stock Exchange. It also demonstrates the true potential of public-private partnerships in driving success and innovation and during 1980. UDA also invested Rs. 25 million for the project.

Despite the challenges posed by the pandemic and the domestic economic environment, Unity Plaza has seen consistent revenue growth. From Rs. 201 million in 2020, revenues have climbed to Rs. 279 million in 2022, demonstrating the project’s success story, which continues to be written under a new chapter.

![11-7](//images.ctfassets.net/dlnoftlqg1xi/2ttLS2i4kb0ywRrcILqULt/47f08ddea85d3b0bdb192e32b09df106/11-7.jpg)

Unity Plaza, the iconic commercial building in the heart of Colombo, has undergone a remarkable transformation and will reopen on November 7.

Unity Plaza to invest Rs. 400 Mn for refurbishment

Sri Lanka’s largest technology mall with modern technology tools and accessories is set to open at Unity Plaza. Sri Lanka Latest News

Arrangements have been made to open this shopping complex with a new look on the 7th and it is said that there are more than 70 shops with well-known brands.

Click here to [view video](https://www.youtube.com/watch?v=orXLTAcSIG4&embeds_referring_euri=https%3A%2F%2Fmawratanews.lk%2F&source_ve_path=OTY3MTQ&feature=emb_imp_woyt)

![UNITY-PLAZA-750x375-1](//images.ctfassets.net/dlnoftlqg1xi/7MXRKrcm0YDwq4nbe8vTXs/335d7b7b0fbed3f6f7d95290f818fb48/UNITY-PLAZA-750x375-1.jpg)

Like Singapore’s ‘Sim Lim’ square, Sri Lanka’s biggest IT HUB will be open in Unity Plaza on the 7th with a new look!

Sri Lanka’s biggest IT HUB will be reopen on the 7th!

Overall consolidated revenue increased by 202% to LKR 524.1 m | GBP 1.2 m | USD 1.4 m in the quarter ended 30th September 2022 compared with LKR 173.3 m | GBP 0.4 m | USD 0.5 m in the corresponding quarter of the previous year. 

Asset Management Update - September 2022

W15 Collection is excited and proud to announce our recognition at the BestWeb.lk competition, the premier web design competition in Sri Lanka. The LK Domain Registry has been conducting BestWeb.lk competition annually since 2009, and this is the twelfth instalment of the event.

W15 Collection has managed to clinch multiple awards at the competition, winning the Overall Silver Winner and the Gold Winner in the Best Travel & Tourist Category, and as Merit Winners in the Best Travel & Tourist Category. The redesigned websites for the W15 Collection were launched in May, 2022.

![Banner Image](//images.ctfassets.net/dlnoftlqg1xi/2PQNWPj8LsDsn8pHUopGN9/9b5d8bd63bae9b1bb9040a3bccd081d4/Banner_Image.jpg)

W15 Collection is the travel and hospitality arm of Lanka Realty Investments PLC, which operates within the residential, commercial and leisure markets and has been a driving force in the real estate industry. 

In our never-ending journey to ensure that we provide the highest calibre of service in our industry, we are grateful to be recognized. We would like to thank all those involved in making these achievements a reality and for the hard work and guidance that has helped us reach great heights.

To read more about the awards, click the [link here](https://www.bestweb.lk/2022-winners/).

W15 Collection is excited and proud to announce our recognition at the BestWeb.lk competition, the premier web design competition in Sri Lanka.

LRI Leisure sector recognized at the BestWeb.lk Awards

![June Press Release Cover](//images.ctfassets.net/dlnoftlqg1xi/4i9n5PyFGWViSg9c2VwCaq/a8da23418c682cf338189644c1dcdbcd/June_Press_Release_Cover.jpg)

## Events of 9th July

Protestors once again occupied the streets of Colombo demanding the resignation of President Gotabaya Rajapaksha, following the mass protests that steered to the resignation of the former Prime Minister Mahinda Rajapaksha. Protestors gathered in large numbers from all over the country at Galle Face adjoining the President’s official residence and the Presidential Secretariat. This was by far the largest assembly held during the past few months of persistent demonstrations against the government’s mismanagement of the current economic crisis.

Regardless of the number of rounds of tear gas and water cannons by the police and armed forces used to disperse the aggravated crowds, protestors invaded the Presidential Secretariat and the official residence of the President. President Gotabaya Rajapaksha was moved to a secured undisclosed location prior to these events taking place.

Concurrently, protestors overran the Prime Minister’s official residence, who was also relocated to an undisclosed venue prior to these events. Towards the latter part of the day, ensuing the attack against several journalists outside the Prime Minister Ranil Wickremesinghe’s private residence in Colombo, the protests escalated and his house was set on fire by unidentified individuals. Subsequently, three suspects were taken into custody for suspected arson.

As a result of the above incidents, the Speaker of the Parliament announced to the public that President Rajapaksha had informed him of his decision to resign from the office on the 13th of July. Correspondingly Prime Minister Wickremesinghe announced his decision to resign as well after facilitating the formation of an interim government.

As a result, several ministers also tendered their resignations from their respective ministerial portfolios.

A total of 105 individuals were admitted to the hospital with injuries. Out of the injured, 11 were identified as journalists. No fatalities were reported.

---

## Transition of Power

As per the constitution, on the occasion that the President and Prime Minister of Sri Lanka both cease to hold office, the Speaker of Parliament becomes the caretaker President, to serve out the remainder of the President’s term.

The Speaker, who met with all leaders of the political parties, held a special meeting on the 11th of July. Party leaders decided to convene Parliament on the 15th of July, after President Rajapaksha’s resignation. Nominations for the post were then accepted on the 19th of July to elect a new President on July 20th.

---

## Impact on Infrastructure

It is reported that there were no adverse effects caused to either the Port of Colombo or the main Bandaranayake International Airport resulting from these protests. Prior to the events on the 9th, the Sri Lanka Ports Authority issued a statement and made assurances that port activities will not falter despite the continuing fuel shortages. Activity in all industrial zones, private sector offices and other manufacturing operations are expected to return to the status quo.

---

## Donor Discussions

The current political changes will imminently affect the efforts of returning economic stability to the country. From our point of view, the process of reviving the economy will further delay due to the civil unrest aggravated by the political instability.

The IMF Senior Mission Chief for Sri Lanka issued a statement reaffirming its commitment to support Sri Lanka, "We hope to resolve the current situation that will allow for the resumption of our dialogue on an IMF-supported programme, while we plan to continue technical discussions with our counterparts in the Ministry of Finance and the Central Bank of Sri Lanka”. 

Sri Lanka will present a debt restructuring programme to the IMF in August to secure an Extended Fund Facility (EFF). Discussions are also underway with India, Japan and China to form an aid consortium once a staff-level agreement with the IMF is reached.

---

## Events of 13th July

President Gotabaya Rajapaksha, who was held safe in an undisclosed location since the 9th of July, left the country in the early hours of July 13th. It was further confirmed by the Sri Lanka Air Force (SLAF) that the President Rajapaksha left for Maldives on an SLAF aircraft, subject to the approval of Defence, Immigration and Customs at Bandaranaike International Airport. President’s formal resignation was expected to be released once he arrived at a safe haven, during the time, constitutionally he remained the President of Sri Lanka.

The President had not officially resigned on the 13th of July, although he had committed to hand over his resignation letter on the said date as the Speaker of the Parliament had indicated. However, during the course of the day President Rajapakse appointed Prime Minister Ranil Wickremesinghe as the Acting President while he was out of the country as per the constitutional powers vested in the office of the President.

Protestors gathered outside the Prime Minister’s office and entered the premises by force in opposition to his appointment as the Acting President of Sri Lanka. Police and the armed forces used tear gas and water cannons to disperse the protestors prior to their forced entry once again. Concurrently, protests took place outside the Parliament premises and outside the residence of the Speaker of Parliament. This was met with similar resistance from the police and the armed forces. While the protests continued at the Galle Face Green and in several other locations outside Colombo, a total of 84 individuals were admitted to hospital with injuries during clashes between protestors and security forces. One fatality was reported caused by respiratory issues from the inhalation of tear gas.

---

## Security Measures

Speaking to media, the now Acting President called upon the Chief of Defence Staff, Commanders of the Armed Forces, and the Inspector General of Police to restore law and order. The Acting President authorised the arrest of those disrupting law and order and acting in a riotous manner. A state of emergency was declared, and an overnight curfew was imposed in the Western Province till 5.00 am on the 14th of July.

In a media statement to the public, The Chief of Defence Staff requested the public to cooperate with the forces and the police to maintain law and order during this transition period.

The national state-owned TV stations, the Sri Lanka Rupavahini Corporation (SLRC) and Independent Television Network (ITN) temporarily suspended their telecasts after the premises were surrounded by protestors demanding coverage of their statements. 

---

## Political Developments

All political party leaders called on the Acting President/Prime Minster to resign immediately. Constitutionally, until a new election is held among Members of Parliament, the powers vested in the President fall to the Speaker of Parliament.

Several Members of Parliament from different political parties announced their candidacy for the office of the President through a secret ballot which took place in Parliament to elect the new president on the 20th of July.

Furthermore, a Gazette was issued declaring a state of emergency island wide from the 18th of July. Additionally, Secretary General of the United Nations expressed his solidarity with the people of Sri Lanka and called for a smooth transition of government to find solutions to the ongoing economic crisis. He also condemned all acts of violence and called for those responsible to be held accountable.

---

## Appointment of the New President

On the 19th of July, Prime Minister Ranil Wickremesinghe, Member of Parliament Dullas Alahapperume and the party leader of Janatha Vimukthi Peramuna, Anura Kumara Dissanayaka nominated themselves for the vacant position of President.

On the 20th of July, Prime Minister Ranil Wickremesinghe won the election by 134 votes through a secret ballot held at the Parliament. Dullas Alahapperuma received 82 votes and Anura Kumara Dissanayaka received 3 votes. A total of 223 Members of Parliament cast their votes; 2 MPs abstained from voting. Four votes were considered invalid, and the number of valid votes were 219.

Ranil Wickremesinghe was sworn in as the 8th Executive President of Sri Lanka on the 21st of July 2022. A Cabinet of 20-25 members will be appointed within the next few days to serve under President Ranil Wickremesinghe. Leader of the House and MP Dinesh Gunawardena was sworn in as the Prime Minister of Sri Lanka under the Presidency of Ranil Wickremesinghe.

Although President Ranil Wickremesinghe was the most suitable candidate to use his international network and deal with the IMF to revive the economy, he’s not the people’s choice for a President. And we are concerned of protests culminating as before. In the 2019 elections he entered the Parliament with one seat from his Party.

The country desperately needs political stability and we expect the new regime to make rapid progress in managing the current economic crisis. However we are concerned if the public is willing to remain patient after all the unrelenting protests they ran for a real change in this current economic climate.

Sri Lanka is going through an unprecedented time of crisis due to economic and political instability. The island nation is grappling with protests, a lack of fuel and gas, and an impending food shortage. Learn about the current political environment and the ongoing situation.

Sri Lanka: Political Update - July 2022

![May 2022 Newsletter Cover](//images.ctfassets.net/dlnoftlqg1xi/52A7UUcvClMsuWZEEL3NHF/c2a05dfdd867013e1196c669e2b0513d/May_2022_Newsletter_Cover.jpg)

Currently, the island is grappling with an economic and political crisis. The current administration is being pressured by the people for solutions to the shortage of essentials such as gas, fuel and food, and foreign currency. Following some significant moves within the administration, the current government has made a move to approach the international community for support. This includes implementing an I.M.F program and other financial mechanisms and policies to further stimulate growth and foreign currency inflow.

Lanka Realty Investments PLC has been resilient in these times and has managed to record an increase in revenue despite the crisis in the country.

"*Hardy and I are extremely proud of our team’s performance, our early covenant of hiring the best has paid dividends in the most trying of circumstances. The pandemic and the marco environment forced us to reevaluate our entire business. It has given us the opportunity to access the minutia of every underlining asset and to visualize the positive change. If you had told us at the beginning of the pandemic that first and foremost we survived, that we were able to carry out a rights issue which lead to the friendly acquisition of On’ally Holdings Plc and all the asset management potential of Unity Plaza, that we manage to let 90% + of HQ Colombo a commercial office building whilst the rest of the world stayed at home and further to be the owner of the fasting selling affordable housing complex in Colombo we would have taken it. Once tourism comes back for good (the situation is still fluid) we will have a very interesting direct property investment business with solid revenue growth! Our aim remains the same, to be the number one listed property entity in Sri Lanka.*" - Archie Warman, Executive Director at Lanka Realty Investments PLC.

---

## Political Situation

Ranil Wickremesinghe, the former Prime Minister, was sworn in as the new Prime Minister on May 12. There is a potential for complications because he is the sole member of his party who holds a seat in Parliament. Some regard this as a possible flaw.

Religious organisations began protesting against Wickremesinghe's likely appointment amid rumours even prior to the official appointment. The main opposition party, the SJB, is sure to raise concerns as well. Sajith Premadasa, the party's leader in Parliament, has offered to assume the role, but only on specific terms.

On Monday, May 9, escalating violence between pro-government and anti-government protesters pushed Prime Minister Mahinda Rajapaksa and his cabinet to resign.

On May 11 at 9:00 p.m., in his speech to the nation, the President stated that a new Prime Minister and a government would be appointed "within this week," which he did. He also stated that he would support the Constitution's 21st Amendment, which would remove the executive presidency of its broad powers and return them to Congress. The 21st Amendment was introduced in Parliament on May 6, the last day of the last parliamentary session.

Meanwhile, President Gotabaya Rajapaksa is under increasing pressure to resign. Only once a new Prime Minister and cabinet have been constituted may the President retire. In that case, the new Prime Minister will temporarily assume the presidency until Parliament picks a new President by a resolution.

---

## IMF and the Currency Situation in Sri Lanka

The economic news is mixed. Nandalal Weerasinghe, the Governor of the Central Bank of Sri Lanka, gave a press conference on the afternoon of May 11 to discuss the state of the economy. Three key messages emerged from his remarks, which should be highlighted.

In terms of the crisis, he stated that 'technical discussions' with the IMF on a relief package are ongoing, and the nomination of a new Prime Minister and his cabinet is still pending. Before negotiations on an IMF package can commence, Sri Lanka must reach debt restructuring agreements with bondholders.

Meeting commitments in the following months will require arranging bridge finance. Requests to trigger contingency clauses in World Bank and ADB project agreements will allow Sri Lankan project funds to be utilised for emergency relief. However, this will not suffice; larger loan packages will be required.

A debt restructuring agreement must be reached quickly. Multilateral financial assistance is conditional on the debt restructuring arrangements being completed quickly. Movement on this will be slow without a functioning and effective government in place. The first priority is to restore political stability.

Meanwhile, India has confirmed another extension of its fuel import line of credit. Negotiations are underway to determine the utilisation of the Chinese swap. 

Fiscal reforms that increase tax collections — and in effect raise taxes – will be required. This will put pressure on the corporate sector, but the current low tax environment is unsustainable. Low tax realisation, according to experts, was a significant contributor to external debt.

The foreign exchange reserves and expenditures will be closely monitored until the external sector is once again manageable. In other words, until the economy is well on its path to recovery, accessibility on the external account will be limited to prevent abuse of scarce resources.

The Central Bank of Sri Lanka (CBSL) intends to limit currency volatility by working with banks to provide a range of daily interbank exchange rate movements. Banks have been urged to give priority to vital medicines, food, and oil and gas imports when allocating forex.

In Sri Lanka, the annual average inflation rate remains persistently high. It is expected to remain at 22% till the end of 2022. Following the social and political unrest, the government temporarily halted fuel distribution, with only critical and essential services receiving fuel.

---

## Company Performance

Hardy and I are pleased that the Company’s financial performance has showcased resilience in difficult times. We saw a 187% increase in our group revenue (LKR 1.2 billion |USD 3.3 million in the year ended 31st March 2021/22 compared to LKR 432 million | USD 1.2 million earned during the year 2020/21). This revenue growth is mainly attributed to experiential residential sales of Mulberry, full occupancy at commercial properties HQ Colombo and Unity Plaza. We have achieved a profit after tax of LKR 1.7 billion | USD 5 million during the year under review compared to the loss after tax of LKR 201 million | USD 0.6 million recorded in the previous financial year. Majority of the profit earned in the year ended 31st March 2021/22 is from the fair value gained from investment properties.

The Group’s total assets increased to LKR 18.5 billion | USD 51 million as at 31st March 2022 compared to LKR 15.3 billion | USD 42 million recorded in 2020/21. Our Net Asset Value for the year 2021/22 was LKR 11.5 billion | USD 32 million compared to LKR 9.7 million | USD 26.9 million during the previous financial year. Furthermore, our NAV per share for the year was LKR 46.91 | USD 0.13 compared to LKR 40.08 | USD 0.11 during the year ended 31st March 2020/21.

Forecast turnover for 2023 is estimated to be around LKR 3.8 billion | USD 10 million through residential sales and on-going commercial revenue, while the main contributing difference being the leisure market. As per the current situation in the country, we can expect a highly challenging year ahead. 

We are ready to meet this challenge and will try to stick to what we can control.

*FX Rate - LKR 359.54 / USD 1*

---

## Our Assets

### Unity Plaza (On’ally Holdings PLC)
*Sri Lanka’s one stop shop for I.T hub*

Having achieved the highest sq.ft rate for retail space in the country at an average price per sq.ft of LKR 1,100, we are pleased to report that we have commenced signing lease renewals based on the new headline rents achieved on a floor by floor basis. We have managed to achieve 72 lease renewals.
Installation of the glass facade is currently underway and the total cost is estimated to be LKR 67 M. It should be noted that management was able to procure the relevant imported material at LKR 205 per USD (prevailing rate is c. LKR 359.54 per USD). More than 60% of the renovations and modifications are complete.

### Mulberry
*Affordable housing with convenience*

We are pleased to inform you that our in-house sales team consisting of three sales personnel have managed to achieve and outperform the sales target by 40% during the last 3 months. 
We have increased the sales prices by 17% with effect from 1st of January 2022 and our sales team has managed to successfully close 21 apartment sales based on these revised sales prices with no discounts. Prices were further increased by 25% with effect from 1st of April 2022 to protect against inflation.
The sales drive is progressing well with 85 apartments sold to date (70%). Out of the 85 units sold we have recorded 77 Sales & Purchases Agreements signed and 8 reservations as at the end of March. 
Total value of the 85 units sold is LKR 1.9 billion of which we have managed to collect LKR 867 million. We have LKR 1.014 billion to collect from the units sold at pre-arranged dates. The total value of the unsold apartments amounts to LKR 1.5 billion.

### HQ Colombo
*Working Lifestyle*

We have achieved 90% occupancy at HQ Colombo. Despite the COVID backdrop, we have managed to secure 100% of the rental payments.
We are developing HQ’s retail presence on the building’s rooftop. This will benefit the HQ Colombo community. Presently we have completed the steel roof structure (total cost amounted to LKR 2Mn), installation of roofing sheet and gutters (total cost amounted to LKR 1.5Mn). We are currently at the design stage for plumbing works and kitchen equipment. We have also received quotations for aluminum and glass work, cladding, bathroom tiles and fittings, durra board and cladding.

### Leisure Sector - W15
*At your service*

We had an exceptional quarter with occupancy rates reaching pre-covid levels with increasing tourist arrivals. However, with the current situation, we expect the tourist arrivals to decline over the coming months due to the current economic situation.
With plans for further expansion, W15 is being rebranded and launched as the W15 Collection. This brand will act as an umbrella organization under which all our leisure properties will be managed.
The W15 Collection website has been launched, while the existing and new property websites are going live in the near future.
W15 Escape Ahangama is in the development stage of converting the existing property to a Surf and Wellness retreat by September of 2022.  The property located in Colombo 6 which was branded as W15 Colombo will seek longer term lettings as opposed to shorter term stays. We are currently conducting light marketing activities as well as completing the refurbishment of 2 of the 6 town houses within this property.

### Amtrad
*Renowned construction prowess*

The new pre-cast product which was launched in 4Q 2020 is seeing positive Traction. The demand for the product remains high. 
As a part of our sustainability initiatives, we have concluded planning and signed a contract with High Energy Private Limited for solar panel installation. The project is expected to be completed in the next quarter. 
Introduced new product range; grass paving, Eliyana, 60mm interlocking paving blocks to increase revenue. 
Renovated and converted existing factory building for dormitory to run 2 shifts to increase the production.

### Land Banks
*1,600 affordable luxury apartments and housing in the development pipeline*

The three landbanks, 285 Darley Road (Pvt) Ltd, Baseline Holdings (Pvt) Ltd, Mulberry Ja-Ela  (Thudella Holdings (Pvt) Ltd) are in the process of being developed into highly valuable assets within the near future. 

The landbank in Ja-Ela  (Thudella Holdings (Pvt) Ltd) has key approvals from regulators to build 54 detached villas and 32 low rise apartments. A greenfield site of 804 perches (5.02 acres), strategically placed 1/2 km off the CKE Motorway. The land is very well located to take advantage of Sri Lanka’s proposed push towards creating a Megalopolis. Plans are underway to commence sales in Q4 2022 under our affordable and luxurious residential property brand; Mulberry. 


Currently, the island is grappling with an economic and political crisis. The current administration is being pressured by the people for solutions to the shortage of essentials such as gas, fuel and food, and foreign currency.

 Asset Management Update - May 2022

On’ally Holdings PLC this week appointed four new directors representing the controlling shareholder Lanka Realty Investments PLC (RIL) following the latter’s acquisition of 50.8% stake, or 47.24 million shares, for Rs. 1.42 billion in December 2020. 

The four are Archie Warman, who was subsequently appointed as Deputy Chairman, and Hisham Jamaldeen as Non-Independent Non-Executive Directors, and Sarravanan Neelakandan and Afzal Ahamed Marikar as Independent Non-Executive Directors. Additionally K.J. Pradeep was appointed as alternate Director to Warman.

Controlling shareholders of LRI is Steradian Capital. 

Warman co-founded Steradian Capital in 2013. Archie concentrates on asset management initiatives, marketing, development, equity raising and investor reporting. A qualified Chartered Surveyor, Archie practised in commercial and residential real estate, involved in investment brokerage, leasing and letting, valuations and development appraisals, property management, landlord and tenant law and asset management, initially in the City and West End of London at Hexell Wylie (now Savills). 

Prior to Steradian Capital, Archie was the Property Director at Newbridge Capital Investments Ltd., a property investment and development company, transacting directly into UK commercial and London residential. 

Archie achieved an MA in Property Valuation and Law at Cass Business School (City University London) and is a Member of the Royal Institute of Chartered Surveyors. Archie James Buckland Warman serves as an Executive Director of Lanka Realty Investments PLC.

Jamaldeen is a finance professional with over 15 years of experience and a seasoned commercial property investor and advisor. He is a Fellow of the Association of Certified Chartered Accountants, UK, and holds a degree in Engineering and Business from the University of Warwick, UK. Jamaldeen serves as a Director of Hayleys PLC, Talawakelle Tea Estates PLC, Haycarb PLC, and the People’s Bank, and also an Executive Director of Lanka Realty Investments PLC. 

He is the Founding Managing Director of Steradian Capital Investments Ltd. and was responsible for financing, corporate structuring, acquisitions and development. He has also been the Executive Director of a number of real estate companies, focusing on commercial property investment and development.

Neelakandan is an Attorney-at-Law and a Barrister of Lincoln’s Inn. He has been practising in the legal profession for over 15 years and is the Founder and Managing Partner of Saravanan Neelakandan Law Associates, with a wide-ranging legal practice in the areas of commercial law, corporate law, banking and finance law, foreign investment, infrastructure projects and dispute resolution. He is also a Co-Editor-in-Chief of the Bar Association Law Journal. He serves as an Independent Non-Executive Director of Lanka Realty Investments PLC.

Afzal Ahamed Marikar is the Honorary Consul General for Pakistan since February 1988. He is also the Chairman/Managing Director of several diversified Companies in Sri Lanka. Marikar is the Chairman/Managing Director of Conmix Ltd., Chairman of Colourcon Ltd., Chairman/Managing Director of Ross Hydro Power Ltd., Managing Director of Icon Hotels Ltd. and Ross Dairies Ltd. 

Marikar was a Director at Tokyo Cement Colombo Terminals Limited from 1996-2017. He was a Director of Sri Lanka Ports Authority from 2000-2004 and a Founding Director of National Construction Association of Sri Lanka (NCASL).

Urban Development Authority is the second largest shareholder in On’ally with 45% stake. With the latest changes the Board of On'ally Holdings Plc comprises of L.A.P.H. De Silva (Chairman), A.J.B. Warman (Deputy Chairman), G.T. Fazleabas, W.L.D.P.V. Jayawardene, T. Sarveshwaran, M.H. Jamaldeen, E.A.C. Piyashantham V.P. Senanayake, SL. Neelakandan, A.A. Marikar, and K.J. Pradeep (Alternate to A.J.B. Warman)

Referencec - [Published by Daily FT](https://www.ft.lk/business/On-ally-Holdings-gets-4-directors-from-new-controlling-shareholder-Lanka-Realty-Investments/34-712653?fbclid=IwAR30Q4faxq7Pn2uVUtKBwCaa_FWCIi5ze8bcrCdEGnAfrCV31UdCykFtp8M)

On’ally Holdings PLC this week appointed four new directors representing the controlling shareholder Lanka Realty Investments PLC (RIL) following the latter’s acquisition of 50.8% stake, or 47.24 million shares, for Rs. 1.42 billion in December 2020. 

On’ally Holdings gets 4 directors from new controlling shareholder Lanka Realty Investments

In the mid-1980s, Singapore’s “Sim Lim Tower” was an unremarkable building – a $ 30 million project housing a few distributors of TVs and printers. Taken over by a new management by the name of “Sim Lim Realty” in 1987, Sim Lim Tower was transformed to “Sim Lim Square”, an ambitious, six-storey, $140 million project. Today, it is an imperative part of Singapore’s IT industry – its name is synonymous for a treasure trove of cutting-edge IT gadgets and gizmos – with a personality of its own that lives and breathes with the hordes of locals and tourists that pass through it every day. Now, 33 years since that achievement of Sim Lim Realty, Sri Lanka’s very own Lanka Realty Investments (LRI) looks to replicate that transformation, with the once popular Unity Plaza.

In Sri Lanka, regardless of your level of tech expertise or enthusiasm, Unity Plaza is the name that comes to mind if you’re looking to make your next IT purchase. However, it’s not the most welcoming space. A labyrinth of silicon and cement, it is not the easiest or most enjoyable mall to navigate through in Sri Lanka – and a shopping trip to Unity is little more than a come-and-go experience for most of us. LRI’s plan is to turn this space into a hub of technology that will attract consumers for reasons not limited to just purchases, but a holistic experience that goes beyond traditional shopping for IT goods.

Earlier this week, LRI made a strategic acquisition cum takeover of On’ally Holdings, the owners of Unity Plaza. LRI acquired a 50.8% stake in On’ally via a share swap with Renuka Capital that disposed of the entirety of its stake (43.8%). The deal was struck with the intention of transforming Unity Plaza into a grade A property in the heart of Colombo. The real estate group aims to capitalise on Unity’s longstanding and already established brand image to turn it into an attractive space for both consumers and occupants alike.

The plan is to make it Colombo’s most popular IT retail and distribution space, apart from making it a profitable real estate venture.

“We’re looking to transform the entire outlook of this space, taking advantage of an established location for IT wholesale and distribution, and turn it into a locale that is comfortable for the customer and the occupier,” said LRI Co-Founder and Executive Director Hardy Jamaldeen.

It is a bold move in the face of economic slowdown and the rapid advancement of the digital revolution. But it presents LRI with a chance to position themselves at the forefront of real estate brokers in Sri Lanka as well as real visionaries who can transform spaces not just for profitability of investors, but also to provide an attractive experience for consumers and occupants. It is an initiative that can be both ROI-positive, substantially boosting consumer satisfaction. As retail spending continues to shift online, focused on delivery-based services, when consumers today visit malls, it is clear they are looking for experiences that go beyond the traditional shopping experience.

LRI, which as a group includes construction material business Amtrad Ltd. as well as leisure interests, has assets worth Rs. 11.6 billion at the end of this fiscal year. If LRI’s eye for potential and track record of turning grade B assets into grade A cash cows with a high ROI and is anything to go by, both consumers and investors will have something to look forward to in the near future.

McKinsey, in a report from 2018, notes that the growing middle class in Asia and Latin America still maintain a strong association between consumption and pleasure. Sri Lanka in particular, with an aging population and increased urbanisation, presents a population which will have a greater need for space in which to socialise and congregate, following the end of the pandemic. The On’ally Holdings PLC management and the renovation of Unity Plaza, while commendable, were outdated and misplaced.

The rentable space of Unity Plaza (excluding Bank of Ceylon premises) is 77,600 square feet. Jamaldeen noted that previous owners (On’ally) attempted to convert the office space into a profitable venture for the past 20 years, but to no avail. For example, in their annual report 2019/20, On’ally wrote that via funds raised through a Rights Issue, it attempted to renovate the space for profitability. Here, Rs. 2.8 billion was allocated for renovation for just the retail space on the second floor. As Jamaldeen noted, however, while the four floors of retail space in the building generated close to Rs. 155 million in revenue in the last fiscal year, the remaining six floors of office space generated a meager Rs. 45 million. Jamaldeen further stated that converting the upper office floors into an attractive and modern space is imperative towards the efforts to transform the entire outlook of Unity Plaza.

Looking towards the future, LRI noted that investors are seeing the “end times” of Covid-19’s impact on the economy and that moves made in the next nine to 12 months will be critical for spurring Sri Lanka’s struggling economy and attracting the flow of foreign capital into the Colombo Stock Exchange (CSE).

LRI’s takeover is the largest post-Covid transaction on the CSE, with hopes of reigniting Sri Lanka’s sluggish capital market amidst the worry surrounding the ongoing pandemic. With the deal closing as the CSE struck the bell to commemorate its 35th anniversary, the All-Share Price Index (ASPI) ended the day going up by 17.26 points and the S&P up by 8.81.

“The time is now,” noted Jamaldeen, and he hopes that not only high-value investors will participate in the real estate boom that is about to take place in Sri Lanka, but a diversified range of investors, both domestic and foreign, will be drawn towards investing in Sri Lanka’s “growth story”.

With the Government of Sri Lanka introducing a framework for real estate investment trusts (REITs) in Sri Lanka earlier this year, the prospects of those who wish to invest in this upcoming market have their lives made easier as they now look to invest without having to worry about the large sums of capital generally involved in real estate investment.

Jamaldeen remarked that LRI looks to capitalise on the provisions of the Budget 2021 which creates a favourable environment towards business, specifically for those in the real estate industry. Jamaldeen further noted that the positive environment created for business will be key to developing not just the future of LRI, but all businesses in Sri Lanka over the next five years as they look to attract foreign capital and channel it towards the CSE.

*Reference - [Published by The Morning LK](https://www.themorning.lk/unity-plaza-to-become-sim-lim-square-of-sri-lanka/?utm_source=dlvr.it&utm_medium=facebook&fbclid=IwAR2SGBHUbhIMflTQqax7YIPGxqma27HEjDwu8-7dbKw2RAQMFHxn0MMRu58)*

In Sri Lanka, regardless of your level of tech expertise or enthusiasm, Unity Plaza is the name that comes to mind if you’re looking to make your next IT purchase. 

Unity Plaza to become Sim Lim Square of Sri Lanka

- Real estate and property industry new kid invests Rs. 1.43 b to buy 51% stake held by Renuka Capital and 4 others
- Triggers SEC Takeovers Code to acquire balance minority shareholding at Rs. 30.20 per share or another Rs. 1.4 b; UDA owns near 45% stake
- Rs. 11.6 b-assets-rich LRI says move part of goal to become foremost property company
- To transform 11-storey building in Bambalapitiya which is popular for wholesale and retail of ICT products
- Post-acquisition share price of On’ally goes up 27.5% and LRI by over 15%
- Transaction and full deal is first major move amidst COVID pandemic in real estate sector and capital market
- Deal struck as CSE rang bell for 35th anniversary

New kid in the real estate industry, Lanka Realty Investments Plc (LRI) yesterday walked the talk of its optimism with a Rs. 2.8 billion takeover move of Colombo 4-located Unity Plaza owning company

![image d4e0178ddb1](//images.ctfassets.net/dlnoftlqg1xi/2vNbKJDPlX8gd1oCrggDJF/15eb3041ca611a8d230728e3761b3364/image_d4e0178ddb1.jpg)

On’ally Holdings Plc.

It acquired a 51% stake amounting to 93 million shares at Rs. 30.20 each in a deal worth Rs. 1.4 billion from Renuka Capital Plc and related parties Dr. S.R. Rajiyah and I.R. Rajiyah (44.6%) and four other shareholders, Petro Energy Lanka and Kirimanjaro Investments Ltd. (2% each), Ashthi Holdings and Capital Alliance, which was the selling side broker (1% each). Renuka Capital had its 43.8% stake in On’ally valued at Rs. 944.8 million as at 30 March 2020.Yesterday’s deal, which accounted for 41% of turnover at the CSE, was structured by Steradian Capital Investments Ltd. (SCI), which is the manager of the assets held by LRI. Buy side broker was Acuity Stockbrokers.

The acquisition triggered the SEC Takeovers and Mergers Code and LRI will make a mandatory offer to acquire the minority stake at a further cost of Rs. 1.4 billion if accepted in full.

The transaction and the full deal are significant as it is the first major move post-COVID or amidst the COVID pandemic in the real estate sector as well as the capital market. 

Incidentally the deal was struck as the CSE rang the  bell ceremoniously yesterday its 35th anniversary. The net asset value per share of On’ally as at 30 September 2020 was Rs. 23.47. On Wednesday On’ally traded between a high of Rs. 27 and a low of Rs. 26.50 before closing at the latter level. Its 52-week highest price was Rs. 42 and lowest was Rs. 23.10.

Some market analysts opined LRI paid a premium whilst others viewed it as attractive given the strategic nature as well as if one factors in the deferred tax liability which was Rs. 626 million as at 30.9.2020. On’ally has Rs. 1.8 billion in retained earnings and zero debt as well.

Post-acquisition, On’ally Holdings share price closed at Rs. 33.80, up by Rs. 7.30 or 27.5% and LRI share price gained by Rs 5.30 or 15.4% to Rs. 39.70.

The largest minority shareholder of On’ally is the Urban Development Authority (UDA), holding 44.8%. The public float is 10.85% held by 888 shareholders.

In FY20, On’ally Holdings PLC was able to sustain a reasonable growth registering a profit, before tax, of Rs. 201.52 million excluding the gain on revaluation of investment property of Rs. 40 million. Compared to the previous year, this is a growth of 8.19%.

Turnover grew by 5.36% to Rs. 201.22 million. Revision of rentals of the existing tenants, maintaining a higher occupancy rate (average occupancy rate in 96.59% in 2018/2019 and 93.67% in 2019/2020) during the financial year and increased in short term investments (mainly from investing right issue proceedings) were the major reasons for this increase in turnover and the profitability.

In FY20, the company also made the largest payout of Rs. 61.4 million to shareholders since the inception. The total dividend declared was Rs. 61.38 Million.

LRI co-founder and Executive Director Hardy Jamaldeen said that the acquisition of On’ally fitted into the company’s portfolio.

“We are committed to become the foremost property company and On’ally, apart from adding a strong property from a popular location in the city, will support our income stream as well. To the Board, we will present our asset management strategy as part of transforming the building,” Jamaldeen told the Daily FT, keeping the rest of the plans close to his chest.

LRI, which as a group includes construction material business Amtrad Ltd., as well as leisure interests, has assets worth Rs. 11.6 billion as at end FY20.

The key highlight in FY20 was the acquisition of six companies in the real estate and leisure sector amounting to Rs. 5.6 billion. This acquisition was carried out via a share swap and was the largest carried out historically on the Colombo Stock Exchange.

The Group now has crucial land banks in Colombo, including commercial property on Darley Road, Maradana, assets under planning, development and fully operational.

In FY20 it reported a turnover of Rs. 204 million, up from Rs. 149 million in the previous year. Profit was Rs. 610 million after a Rs. 1 billion change in fair value of investment properties.

Acquisition of On’ally gives LRI a new growth opportunity, analysts said. 

In 2Q despite the COVID-19 impact, On’ally turnover has remained resilient at Rs. 49.3 million, marginally down from Rs. 50 million a year ago. Pre-tax profit was Rs. 49.4 million as against Rs. 51 million in the 2Q of last financial year. Post-tax profit amounted to Rs. 37 million, up from Rs. 36.5 million.

In the first half of FY21, turnover was Rs. 85 million as against Rs. 99.6 million a year ago and pre-tax profit was Rs. 89 million, down from Rs. 98 million. Post-tax profit was Rs. 67 million as against Rs. 70 million in the first half of FY20.

Unity Plaza, with its first five retail floors being cash cows, is considered as an ICT products hub given the wide range of wholesale and retailers.

“Our focus is to provide quality commercial space mainly for the thriving information technology industry with occupants who will elevate the image of Unity Plaza as the centre for computers, computer accessories and IT-related businesses in Colombo,” the company said in its 2019/20 Annual Report. In May 2019, the company raised Rs. 105 million via a Rights Issue to refurbish the Unity Plaza.

*Reference - [Published by Daily FT](https://www.ft.lk/top-story/LRI-gets-bullish-with-Rs-2-8-b-takeover-move-of-Unity-Plaza-owner-On-ally-Holdings/26-709761)*

New kid in the real estate industry, Lanka Realty Investments Plc (LRI) yesterday walked the talk of its optimism with a Rs. 2.8 billion takeover move of Colombo 4-located Unity Plaza owning company

LRI gets bullish with Rs. 2.8 Billion takeover move of Unity Plaza owner On’ally Holdings

The study has identified the biggest pain point which influences the lack of FDIs being non-conducive policy. Policy reform will serve as a critical enabler that will set-in place the appropriate ecosystem to attract FDIs into Sri Lanka. Critical cogs in the wheel of FDIs will need to be identified, relevant policy streamlined and bottlenecks eliminated.

Whilst the thrust in infrastructure development is considered as an important factor in attracting FDIs, the heavy capital expenditure (Capex) requirement cannot be overlooked. At present there does not seem to be sufficient fiscal room for the incumbent Government to engage in an explosive Infrastructure development drive. The thrust in the short to medium term should be to expedite the bringing online of the existing infrastructure projects that are currently funded and underway. 

A conducive fiscal environment at a latter point in time will allow Sri Lanka to actively partake in infrastructure led growth. However, in order to further reinforce the economic impetus and positive spillover that is envisaged due to the development drive in infrastructure projects, it is vital to draw up a 10 year roadmap showcasing all potential investible infrastructure projects which can be showcased on a prioritised basis to both local and foreign stakeholders. It is essential that this road map is endorsed by all parties concerned to ensure continuity of such projects in the event that a change in regime is to take place. This will showcase further stability to prospective investors.

The majority of the factors that need to be aligned in order to facilitate the flow of FDIs into Sri Lanka, whilst not being Capex heavy, is weighted greatly around policy reform. The recent taskforce that was set-up to curb and mitigate the spread of COVID-19 has been effective. A similar taskforce should be set-up to fulfil the policy reform mandate in a short space of time.

The time is now to proactively seek out policy reform by putting in place the people, comprising of public sector officials, private sector practitioners and industry think-tanks to formulate, amend, and finally implement actionable policy to improve the attractiveness of Sri Lanka as a key FDI destination in the region.  

Eight key variables that influence and attract FDIs into countries with particular reference to six regional competitors will be discussed further.

Click here to read more.

*Reference - [Published by Daily FT](https://www.ft.lk/columns/Policy-reform-key-to-attract-Foreign-Direct-Investment-and-spur-economic-growth/4-703796)*

An opportunity has emerged for Sri Lanka to attract high quality Foreign Direct Investments (FDIs) in the prevailing COVID-19 backdrop.

Policy reform key to attract Foreign Direct Investment and spur economic growth

An opportunity has emerged for Sri Lanka to attract high quality Foreign Direct Investments (FDI’s) in the prevailing COVID-19 backdrop, says Executive Director, Steradian Capital Investment, Hardy Jamaldeen.

He said that the manner in which the government is battling the COVID-19 pandemic is one of the biggest strengths and also one could finally see long term policy reforms finally being implemented. “These are major plus points to woo FDI.”

He said that a study has identified the biggest pain point which influences the lack of FDI’s being non-conducive policy and critical cogs in the wheel of FDI’s will need to be identified.

“The recent task force that was set-up to curb and mitigate the spread of COVID-19 has been effective. A similar task force should be set-up to fulfill the policy reform mandate in a short space of time.”

Whilst the thrust in infrastructure development is considered as an important factor in attracting FDI, the heavy capital expenditure (Capex) requirement cannot be overlooked.

“At present there does not seem to be sufficient fiscal room for the incumbent Government to engage in an explosive Infrastructure development drive. The thrust in the short to medium term should be to expedite the bringing online of the existing infrastructure projects that are currently funded and underway.”

A conducive fiscal environment at a later point in time will allow Sri Lanka to actively partake in infrastructure led growth. However, in order to further reinforce the economic impetus and positive spillover that is envisaged due to the development drive in infrastructure projects, it is vital to draw up a 10 year roadmap showcasing all potential investible infrastructure projects which can be showcased on a prioritised basis to both local and foreign stakeholders. “It is essential that this road map is endorsed by all parties concerned to ensure continuity of such projects in the event that a change in regime is to take place.”

The time is now to proactively seek out policy reform by putting in place the people, comprising of public sector officials, private sector practitioners and industry think-tanks to formulate, amend, and finally implement actionable policy to improve the attractiveness of Sri Lanka as a key FDI destination in the region.

Jamaldeen, former Finance Director, Newbridge Capital Investments Limited London, identified eight key variables that influence and attract FDI’s into countries. They are 1) Stable Government and Policy 2) Up to date Legal Framework 3) Advanced and Integrated Infrastructure, 4) Macro Indicators ( Stable economy with consistent growth in GDP, Low lending rates, Low single digit) 5) Fair and attractive business environment, 6) Regional and bilateral trade agreements, 7) Regionally competitive tax structure 8) Educated and Skilled Workforce. (SS).

*Reference - Publushed by Daily News*

An opportunity has emerged for Sri Lanka to attract high quality Foreign Direct Investments (FDI’s) in the prevailing COVID-19 backdrop, says Executive Director, Steradian Capital Investment, Hardy Jamaldeen.

Chance to grab high quality FDI amid Covid-19 backdrop

Doubling of tourist arrivals to five million in three years requires Sri Lanka to take some bold and innovative measures apart from effective marketing of a more organised tourism destination, a top expert opined. 

Steradian Capital Joint Managing Director and Lanka Realty Investments Plc Managing Director Hardy Jamaldeen Hardy Jamaldeen, who is also a Director at Hayleys Plc,  which has interests in travel and tourism, says Sri Lanka can learn fast from the more tourism successful countries such as Thailand, Malaysia and Singapore and others to get the effort and strategy right. 

Hardy, who has analysed three other countries which are successful in attracting tourists — Thailand, Malaysia and Singapore — says  Sri Lanka meets only one of the seven criteria for success. 

He says Sri Lanka’s main pain points are lack of capacity at the Bandaranaike International Airport, underdeveloped domestic airports, fewer number of international flights, low percentage of budget carriers, unfriendly immigration policy and disjoined destination offering. The only satisfactory capacity is the number of rooms, though the industry is divided over quality,  service offering and pricing.

Immediate expansion and modernisation of the Bandaranaike International Airport is a key priority, he said. 

Currently the BIA’s capacity utlisation is an unprecedented 163%, suggesting resources have been overstretched, forcing an unpleasant experience for the international traveller. 

BIA’s designed capacity is six million passengers but it is handling nearly 10 million per annum. Of the traffic handled, over 20% comprises tourists. 

“If the capacity is increased to 20 million maintaining the 22% arrival mix, it means 4.4 million tourists,” he said. However, to reach the desired five million tourist figure, the arrival mix must be increased to 25% from the current 22%, he explains.

Hardy also emphasised on the need to increase the number of daily flights from the current 94 to 200 and the ratio of full-service and budget carriers must be substantially increased from 7% at present to 50%, which is also similar to the more successful destinations such as Thailand, Malaysia and Singapore.

Apart from proper development and marketing of the destination, Sri Lanka must truly adopt an open skies policy with special agreements with SAARC countries and perhaps ASEAN.

In terms of creation of a friendly Immigration Policy, Hardy says visa on arrival for tourists from regional destinations is a must. “Charge the visa fee into the ticket, similar to the previous Embarkation Tax,” he added. 

He also opines that in comparison to Thailand, Malaysia and Singapore, Sri Lanka’s tourism offering is scattered.  “We need to focus on wellness tourism, Ayurveda tourism, bird-based tourism, festival tourism, etc. to make Sri Lanka more attractive to tourists if we are serious about achieving the desired five million target,” Hardy emphasised. 

[Click here](https://www.ft.lk/special-report/What-it-takes-for-Sri-Lanka-to-achieve-5-million-tourists-by-2021/22-672321) to read more.

*Reference - [Published by Daily FT](https://www.ft.lk/special-report/What-it-takes-for-Sri-Lanka-to-achieve-5-million-tourists-by-2021/22-672321)*

Doubling of tourist arrivals to five million in three years requires Sri Lanka to take some bold and innovative measures apart from effective marketing of a more organised tourism destination, a top expert opined. 

What it takes for Sri Lanka to achieve 5 million tourists by 2021

Lanka Realty Investments PLC launched its newly-refurbished head office – HQ Colombo – and held cocktails recently at 464A, T. B. Jayah Mawatha, Colombo 10. The property comprises eight floors of high-end office space.

![Lanka-Realty-Investments-launches-HQ-Colombo/15-687327](//images.ctfassets.net/dlnoftlqg1xi/3YBbYakEdgNEo10Pl4FtFK/b93485b117bd99e58163294d2936d80e/image_d4e0178ddb.jpg)

[Click here](https://www.ft.lk/ft-click/Lanka-Realty-Investments-launches-HQ-Colombo/15-687327) to view article.

*Reference - [Published by Daily FT](https://www.ft.lk/ft-click/Lanka-Realty-Investments-launches-HQ-Colombo/15-687327)*

Lanka Realty Investments PLC launched its newly-refurbished head office – HQ Colombo – and held cocktails recently at 464A, T. B. Jayah Mawatha, Colombo 10.

Lanka Realty Investments launches HQ Colombo

- LRI broadens Group’s exposure to real estate sector with a view to becoming the largest asset-backed income generating real estate holding company in the country
- Acuity Partners act as Manager and Financial Advisor to the Share Swap/Private Placement

Lanka Realty Investments Plc (LRI) has recently concluded the largest-ever acquisition share swap worth Rs. 5.6 billion. 

LRI boasts of commercial operations spanning over five decades. In October 2017, LRI was acquired by a consortium of British and Sri Lankan investors with the aim of becoming the largest real estate company listed on the Colombo Stock Exchange (CSE). Subsequent to the acquisition, LRI carried out a rights issue raising Rs. 632.9 million in October 2018 and recently concluded a Rs. 5.6 billion share swap for the acquisition of the entire shareholding in six privately-held companies which have exposure to the commercial property, affordable housing and tourism and leisure sectors, thus expanding the Group’s overall real estate exposure. Through the Share Swap LRI issued 149,179,853 ordinary voting shares of the Company at an issue price of Rs. 37.52 per share to the shareholders of the 6 private companies in return for their shares in these 6 companies. 

Post the Share Swap, LRI Group has 11 subsidiaries and three sub-subsidiaries with business interests in commercial property, affordable residential property, real estate land banks, leisure and manufacturing. The Group holds 8.4 acres of freehold land in Colombo with planning permission for the development of 1,649 residential units, a circa 100,000 sq. ft office building in Colombo 10, three operational boutique hotels and villas in Colombo, Weligama and Ahangama with 44 rooms, two leisure sector development projects under construction for 30 rooms in Yala and 53 rooms in Ambalangoda and two companies operating in the manufacture of construction material.

The recently-concluded acquisition is expected to boost foreign investor interest in LRI due to the opportunity it provides by acting as a platform for foreign investors to participate in real estate investments in Sri Lanka which is restricted in unlisted companies as per the Land (Restrictions on Alienation) (Amendment) Act No. 21 of 2018. Furthermore, the blend in terms of operational, development and land banked assets is expected to further enhance returns to the investors in the LRIGroup. 

LRI Executive Director Hardy Jamaldeen said: “These acquisitions have paved the way for LRI to embark on the next phase of growth and we are eager to execute the plans that we have to set-out at the beginning of this exercise. We are excited and optimistic about what the future has in store for this company and are relentless in the pursuit of positioning ourselves as the largest asset backed income generating real estate holding company in the country.” Acuity Partners Ltd., a leading investment bank, acted as Manager and Financial Advisor to the Share Swap/Private Placement, thereby guiding the Group through the entire process. 

Its Managing Director Ray Abeywardena said: “It was a pleasure to work on this transaction with LRI which is expected to be a catalyst towards increasing investor interest on Sri Lanka as well as the Colombo Stock Exchange. This is one of the largest share swaps carried out by a listed entity in the recent past. Despite the significant size of this transaction, Acuity was able to work alongside the LRI senior management to take this transaction through to a successful conclusion.”

“Our expertise and past experience in carrying out transactions of this nature both on and off the market such as the Private Placement of Vallibel One PLC where we raised Rs. 4.9 billion within one day gave us the confidence of our ability to successfully complete this transaction. We thank the directors of LRI for the confidence placed in Acuity’s capabilities,” Abeywardena added.

*Reference - [Published by Daily FT](https://www.ft.lk/front-page/Lanka-Realty-Investments-concludes-largest-acquisition-share-swap-of-Rs-5-6-b/44-684600)*

Lanka Realty Investments Plc (LRI) has recently concluded the largest-ever acquisition share swap worth Rs. 5.6 billion.

Lanka Realty Investments concludes largest acquisition share swap of Rs. 5.6 Billion

Lanka Realty Investments PLC Board has resolved to acquire six private companies in commercial property, affordable housing, tourism, and leisure sectors, which are related parties through the issue of 149,179,853 ordinary voting shares of the Company via a Share Swap /Private Placement.

The six companies are Baseline Holdings Ltd., Alexandra Holdings Ltd., 285, Darley Road Ltd., Mulberry Holdings Ltd., Thudella Holdings Ltd., and Almond Trees Ltd., and will be acquired at their respective net asset values aggregating to Rs. 5.6 billion and in exchange, the shareholders of the said six companies are to receive ordinary voting shares of LRI at an issue price of Rs. 37.52 per share.

 The total number of LRI shares to be issued to the aforesaid Related Parties is 137,216,313 shares.

Consequently 149,179,853 new ordinary voting shares of the Company are to be issued to the shareholders of the sad six companies in place of their shareholding in those companies (of which 137,216,313 shares are to be issued to the aforesaid Related Parties) and upon completion of the transfer of shares, the said six companies will be fully owned subsidiaries of LRI.

The new shares of LRI being issued at an issue price of Rs. 37.52 per share (which represent the adjusted Net Asset Value per share of LRI as at 31 December 2018) was considered by the Board of LRI as fair and reasonable to LRI and to the existing shareholders of LRI.

The acquisition of shares will result in the following benefits to LRI: 

Increase in Total Asset Base due to the acquisition of six companies 

Increase in immediate revenue due to the several operational assets being acquired 

Increase in overall future revenue due to the development work that has commenced in certain assets and planned development work on the other assets being acquired 

Mitigation of overall real estate related risk due to having a mix of exposures in tourism and leisure, commercial property and affordable housing 

Enhancement of the overall brand value of LRI due to the diverse real estate portfolio

LRI will serve as an ideal investment vehicle if an investor requires exposure in diverse sub-asset classes within the real estate sector, and will facilitate easier borrowing for development / further acquisition if required given the large consolidated asset base. 

The relevant related parties Eighth Wonder, Terence Charles Smith, Ian Joseph McVeigh, Mohamed Hisham Jamaldeen, Archie James Buckland Warman, Piers Morgan and Steradian Capital Investments Ltd.

Eighth Wonder is the single largest shareholder of the Company, which holds 16,513,863 shares constituting 37.276% of the issued shares of the Company; Terence Charles Smith is a Director of the Company and the sole shareholder of Eighth Wonder, and the other parties are Directors/Shareholders of the Company, who respectively hold 9,131,354 shares (20.612%), 6,255,806 shares (14.121%), 2,783,208 shares (6.282%) and 5,322,827 shares (12.015%) of the Company.

Steradian Capital Investments Ltd. is a company owned by Eighth Wonder, Ian Joseph McVeigh, Mohamed Hisham Jamaldeen, Archie James Buckland Warman, and Piers Morgan.

The move is to take place subject to and only upon receiving the relevant approvals from the Colombo Stock Exchange, Securities and Exchange Commission of Sri Lanka and the shareholders of the Company.

*Reference - [Published by Daily FT](https://www.ft.lk/front-page/Lanka-Realty-Investments-to-buy-six-related-private-companies-for-Rs--5-6-b/44-677870?fbclid=IwAR25nMU5TW6RDVIPK3vLsNioDnbkGOFiwR1FdRf8dvrxwWZKjbQLQGjIDfM)*

Lanka Realty Investments PLC Board has resolved to acquire six private companies in commercial property, affordable housing, tourism, and leisure sectors, which are related parties through the issue of 149,179,853 ordinary voting shares of the Company via a Share Swap /Private Placement.

Lanka Realty Investments to buy six related private companies for Rs. 5.6 Billion

Lanka Realty Investments, a Sri Lankan real estate investment and development company, said in a stock exchange filing its rights issue to raise 632 million rupees had been fully subscribed.

The company, formerly known as Ascot Holdings, aims to use the funds mainly for additional investments, complete debt settlement and for working capital needs, Archie Warman, Executive Director of Lanka Realty Investments, said.

The stock exchange announcement said applications for 31.8 million shares were received. The firm had offered 31.6 million shares at two shares for five at 20 rupees a share.

A company statement said Lanka Realty Investments was encouraged by the growth prospects present in the real estate sector and are pleased with the recent development in the regulatory environment.

The recent Amendment to the Land Restrictions on Alienation Act lifts the restriction of limiting foreign shareholding to 49% on listed companies holding freehold land and will now allow foreigners to hold the controlling stake in listed companies owning freehold land.

“This encouraging development is expected to position Lanka Realty Investments PLC as an investment vehicle for foreign investors to partake in Sri Lanka’s real estate growth story,” the statement said.

A complete re-engineering of the company took place after the takeover of Ascot Holdings in October 2017 by an international consortium of British and local investors, it said.

“We now have free rein in terms of showcasing Sri Lanka’s real estate opportunities to our international investors,” said Hardy Jamaldeen, Executive Director of Lanka Realty Investments.

“Our concrete block and paving stones operation Amtrad Limited, will be streamlined and repositioned to capitalise on major construction projects.

"We are keen on re-commencing our leisure operations via renewed investments in our leisure assets in Yala and Ambalangoda.”

*Reference - [Published by EconomyNext](https://economynext.com/sri-lankan-realty-firmaes-rights-issue-fully-subscribed-11799/)*

Lanka Realty Investments, a Sri Lankan real estate investment and development company, said in a stock exchange filing its rights issue to raise 632 million rupees had been fully subscribed.

LKR 632m Rights Issue

Lanka Realty Investments PLC (formerly known as Ascot Holdings PLC) is making a fresh foray with the core vision of becoming the foremost listed real estate investment and development company in Sri Lanka, attracting overseas investors merged with the local retail investors.

The Board of Directors of Lanka Realty Investments (LRI) said it is encouraged by the growth prospects present in the real estate sector and pleased with the recent development in the regulatory environment. The recent Amendment to the Land Restrictions on Alienation Act lifts the restriction of limiting foreign shareholding to 49% on listed companies holding freehold land and will now allow foreigners to hold the controlling stake in listed companies owning freehold land. 

This encouraging development is expected to position LRI as an investment vehicle for foreign investors to partake in Sri Lanka’s real estate growth story.

“We are eagerly looking forward to 2019 as plans are underway to establish LRI as the foremost listed entity in the area of real estate investment and development,” Executive Director Hardy Jamaldeen said. 

“We are taking further aggressive strides to optimise the potential of the company as we will be raising Rs. 632 million via a rights issue, primarily for additional investments, complete debt settlement and working capital needs,” Executive Director Archie Warman added.

Subsequent to the takeover of Ascot Holdings PLC in October 2017 by an international consortium of British and local investors, a complete re-engineering of the company took place amidst a challenging operating environment. The consortium heading LRI has ensured that the first act was to ensure that the Company’s Constitution was strengthened with Articles of Association aligned with good corporate governance and international best practices. Moreover, the Board of Directors was re-constituted as was every Board sub-committee. Mohan Ratnayake continues to serve as the Chairman. 

Within 12 months of taking over the operations, profits in the company has witnessed an increase from Rs. 33 million to Rs. 235 million, total assets has increased by 35% from Rs. 1.30 billion to Rs. 1.75 billion and shareholders’ funds have increased by 46% from Rs. 0.70 billion to Rs. 1.02 billion.

The key shareholders and present Directors hold a gamut of expertise in fund management and real estate investment and development. At the helm of the newly renamed entity is Hardy Jamaldeen and Archie Warman, who collectively contribute 35 years of experience in commercial/residential property investment and development. 

Amongst its directors is Terence Charles Smith, a globally renowned fund manager who runs a $ 24 billion investment management operation, and Ian Joseph McVeigh, formerly a Senior Fund Manager of Jupiter Asset Management (UK) who ran the Jupiter UK Growth Fund with assets of about $ 1.3 billion. 

“We are delighted about what the future holds for LRI given that we have free rein now in terms of showcasing Sri Lanka’s real estate opportunities to our international investors. Further, our concrete block and paving stones operation Amtrad Ltd. will be streamlined and repositioned to capitalise on major construction projects. We are keen on re-commencing our leisure operations via renewed investments in our leisure assets in Yala and Ambalangoda,” Jamaldeen said.

The Board of Directors of LRI comprises of Chairman Mohan Ratnayake, Executive Director Mohamed Hisham Jamaldeen, Executive Director Archie James Buckland Warman, Non-Executive Director Terence Charles Smith, Non-Executive Director Ian Joseph McVeigh, Non-Executive Director Mohamed Firdouse Farook, Non-Executive Director Saravanan Neelakandan, and Non-Executive Director Kudagamage Jayantha Pradeep..

*Reference - [Published by Daily FT](https://www.ft.lk/front-page/Lanka-Realty-Investments-debuts/44-664069)*

Lanka Realty Investments PLC (formerly known as Ascot Holdings PLC) is making a fresh foray with the core vision of becoming the foremost listed real estate investment and development company in Sri Lanka, attracting overseas investors merged with the local retail investors.

Lanka Realty Investments debuts

Ascot Holdings PLC changes its name to Lanka Realty Investments PLC. Find the attached document which shares the Certificate of Incorporation for Lanka Realty Investments PLC issued by the Registrar-General of Companies. 

The letter by Secretaries states the following; Consequent to the Special Resolution passed by the Shareholders on 12th September 2018, resolving to change of name of the Company, we forward herewith a certified copy of the Certificate of Incorporation issued by the Registrar-General of Companies under Section 8(3) (b) of the Companies Act for the said change of name to "Lanka Realty Investments PLC".

Ascot Holdings PLC changes its name to Lanka Realty Investments PLC. Find the attached document which shares the Certificate of Incorporation for Lanka Realty Investments PLC issued by the Registrar-General of Companies. 

 Certificate of Incorporation - Lanka Realty Investments

- Amendment to Land Restrictions on Alienation Act removes restriction of 49% foreign shareholding on listed companies if it holds freehold land
- As most listed entities own freehold land the former law was a barrier for active foreign investors looking to buy over majority stakes in Sri Lankan listed companies

Foreign investments into listed companies are set to get  a big boost following the recent amendment to the Land Restrictions on Alienation Act.

Previously under the original legislation Land (Restrictions on Alienation) Act No. 38 of 2014, the transfer of title of any land situated in Sri Lanka was prohibited if such transfer is (a) to a foreigner; or (b) to a company incorporated in Sri Lanka under the Companies Act, where any foreign shareholding in such company, either direct or indirect, is 50% or above; or (c) to a foreign company.

However this Act was amended via the Land (Restrictions on Alienation) (Amendment) Act No. 21 of 2018, enabling foreign entities to purchase freehold land in Sri Lanka if the entity is listed on the CSE. Therefore, the restriction of 49% foreign shareholding on listed companies if the listed companies hold freehold land has been removed. The new Act comes into effect retrospectively from 1 April 2018.

The Amendment had been recommended by the capital markets as well as the real estate industry as previous legislation imposed a barrier to draw higher foreign investments and constrained companies which had over 49% foreign holding. 

The Amendment was also long due as it was proposed in the 2017 Budget of the Unity Government.  When contacted, Colombo Stock Exchange (CSE) Chairman Ray Abeywardena hailed the move. 

“Obviously this is significant for the CSE as it will hopefully increase the market cap of the CSE and liquidity of the exchange and companies within,” Abeywardena emphasised. 

“The move is great for FDI and a real boost for Sri Lanka as almost all businesses have some form of real estate activity,” added real estate specialists Steradian Capital Co-Founder Hardy Jamaldeen.

Ideally, if Sri Lanka is keen to draw higher foreign investments for every economic or business sector, those in best-in-class globally must be encouraged to take controlling stakes. This cannot be done at present because most of the listed companies have land and property under them, and under the Land (Restrictions on Alienation) Act of 2013 there are prohibitions on transfer of land for a company with foreign shareholding direct or indirectly at 50% or above. 

“This 49% foreign ownership limit discourages foreign investors who are looking to buy controlling stake in a listed entity,” said Hardy Jamaldeen.

“The previous ambiguity was a big concern and discouraged real higher foreign investment not only in real estate but in other economic sectors too,” he added. 

Both Jamaldeen and Abeywardena expressed the confidence that the amendment will spur FIIs to play a more active role in CSE than a passive one and help boost market capitalisation. 

Jamaldeen explained that as most listed entities own freehold land, this law was a barrier for active foreign investors looking to buy over majority stakes in Sri Lankan listed companies.

“Due to this fact, most foreign buying in the market has been passive stakes which have been led by funds looking for geographical diversification.Best-in-class investors and companies which would like to acquire an existing listed business and transfer technical competence and capital to access the region have had no possibility in the past. This amendment really opens up many possibilities,” Jamaldeen added.

Abeywardena said the Amendment will also boost FDIs into Sri Lanka, especially the $ 15 billion envisaged via the Port City development, and help the Government to secure successful foreign institutional investors to planned divestiture of non-strategic commercial entities such as Hilton and Hyatt via the CSE.

At present, foreign participation at the CSE is around 45% whereas in good times it had been over 60%. So far this year the market had suffered a net foreign outflow of around Rs. 4.6 billion. Foreign holding of listed shares is around 24% as at end July, and their value is Rs. 760 billion down from Rs. 827 billion a year ago.

*Reference - [Article published by Daily FT](https://www.ft.lk/top-story/Big-boost-for-foreign-investment-into-listed-companies/26-663020)*

Foreign investments into listed companies are set to get  a big boost following the recent amendment to the Land Restrictions on Alienation Act.


Big boost for foreign investment into listed companies

A consortium of local and foreign investors yesterday purchased a significant stake in the property development and hospitality holding company Ascot Holdings PLC (Ascot), as the firm’s two largest shareholders exited.

The Mauritius-based company Eighth Wonder, the UK-based individuals Ian McVeigh and Archie Warman and Hayleys PLC Director and businessman Mohamed Hisham Jamaldeen in concert purchased 5.69 million Ascot shares representing 44.98 percent of the company for a total consideration of Rs.241.61 million, paying Rs.42.50 per share.

The deal triggered the Securities and Exchange Commission’s Takovers and Mergers Code and the consortium is required to announce a mandatory offer to purchase the remaining shares of Ascot.

Ascot shares closed trading yesterday at Rs.43.70, up Rs. 10.70 or 32.42 percent. The net book value of Ascot share was Rs. 52.77 at the end of June 2017.

Eighth Wonder made the largest purchase into Ascot with 3.1 million shares, while McVeigh bought 1.47 million shares. Warman bought 418,450 shares and Jamaldeen bought 698,563 shares.
The main two sellers of the shares were Axis Investments (Pvt) Ltd and St. Louis Capital (Pvt) Ltd.

Ascot subsidiaries include the commercial property development arm Ascot Developments (Pvt) Ltd, a cement pavers and blocks manufacturer Amtrad Limited, a crusher plant operator L & A Quarries (Pvt) Ltd, as well as three not yet operational hospitality firms. According to the Ascot annual report released last month, two of the hospitality subsidiaries, which were planning to construct hotels in Yala and Ambalangoda had suffered setbacks, and the firm was looking for a joint venture partner to commence construction immediately.

Ascot holds Rs. 1.1 billion in investment property, which consists of a 41.5 perch property off T. B. Jayah Mawatha in Colombo 10, which has an eight floor building with a space of 70,100 square feet, and derives an income of Rs.108 million for 12 months occupancy.

Ascot made Rs.34.78 million in net profits during the 2017 financial year, up 42.9 percent from a year earlier. 

---

## Stocks touch 1-week high; net foreign inflow closes in on Rs.20bn

REUTERS: Sri Lankan stocks touched a one-week closing high yesterday, as investors picked up shares of beverages and telecom companies, brokers said. The Colombo stock index finished 0.3 percent firmer at 6,590.50, its highest close since October. 16. Shares of Ceylon Cold Store Plc climbed 4.1 percent, while Hatton National Bank Plc rose 0.3 percent and Ceylon Brewery Plc ended 13.8 percent firmer.

“Market looks positive and we can see some big investors looking for opportunities to buy, and that’s the reason we see mergers and acquisitions these days, which have pushed the turnover levels,” said Reshan Kurukulasuriya, Chief Operating Officer of Richard Pieris Securities (Pvt) Ltd.

“Retail investors are waiting to see the direction from the corporate results and budget.”

Finance Minister Mangala Samaraweera will present the 2018 budget on November 9.
Turnover stood at Rs.743.5 million, below this year’s daily average of Rs.937.4 million.

Foreign investors net bought shares worth Rs.275.4 million yesterday, extending the year-to-date net foreign inflow to Rs.19.4 billion worth equities.

*Reference - [Published by Daily Mirror Online](https://www.dailymirror.lk/article/Local-foreign-consortium-buys-stake-in-Ascot-for-Rs-mn-139111.html)*

A consortium of local and foreign investors yesterday purchased a significant stake in the property development and hospitality holding company Ascot Holdings PLC (Ascot), as the firm’s two largest shareholders exited.


Local-foreign consortium buys 45% stake in Ascot for Rs. 241mn

- Govt. urged to gazette previously-announced lifting of restrictions imposed on foreign-controlled PLCs via Land (Restrictions on Alienation) Act of 2013
- Further delay may impact $ 13 b investment projects envisaged in Port City; divestiture of Hilton and Hyatt and execution of PPPs
- Steradian Capital says CSE’s market capitalisation of $ 20 b is equivalent to value of only four-and-a-half-square kilometres of Colombo
- Colombo’s market capitalisation four times less than regional peers due to policies discouraging foreign investors
- Capital of companies and family wealth offices stuck in land and building; 2017 Budget move implementation will free up billions, fund next phase of economic value creation

A near year-long delay in gazetting a 2017 Budget-approved liberalisation move is locking up billions of capital in listed firms and discouraging a higher inflow of foreign investment into the country, according to property sector experts.

In November last year, the Government via the 2017 Budget promised to introduce laws which would enable Public Limited Companies (PLCs) even with 51% foreign ownership the freehold right to land. 

However, despite almost a year having passed, it hasn’t been gazetted yet and the delay and continuing ambiguity has jeopardised the country›s chances of attracting a higher inflow of foreign investments and additional economic value creation across various business sectors.

“Ideally, if Sri Lanka is keen to draw higher foreign investments for every economic or business sector, those which are best-in-class globally must be encouraged to take controlling stakes. This cannot be done at present because most of listed companies have land and property in them and under the Land (Restrictions on Alienation) Act of 2013 there are prohibitions on transfer of land of a company where foreign shareholding is direct or indirectly 50% or above. This 49% foreign ownership limit discourages foreign investors who are looking to buy a controlling stake in a listed entity,” Real Estate specialists Steradian Capital said.

“The current ambiguity is a big concern and discourages real higher foreign investment not only in real estate but in other economic sectors too,” Steradian Capital Co-Founders Hardy Jamaldeen and Archie Warman told the Daily FT.

 “This issue needs to be fixed soon if work to be started on promotion of Port City projects, estimated to generate $ 13 billion investment. It has a bearing on effective implementation of much-discussed Public-Private Partnerships policy of the Government and the planned divestiture of non-strategic State assets such as Hotel Developers (Hilton), Hyatt, etc., which have a portion of freehold land,”they added.

“In the Port City, the office space envisaged is 70% of Singapore office space. If the Government is keen to attract FDIs and make Port City a success as well as harness Sri Lanka’s strategic hub status benefits, then some of the archaic restrictions must be eased,” they emphasised.

They noted that CSE’s market capitalisation of $ 20 billion was equivalent to the value of only four-and-half-square kilometres of Colombo. Market capitalisation of regional peers is at least one time the GDP, which is $ 80 billion, so Colombo›s market capitalisation is four times less.

“Why we are of that shape and size is due to because of the lack of foreign participation due to the absence of encouraging policies. At the moment foreigners are only taking passive stakes in companies and that too as a means of diversification of geographical portfolio/exposure,” they said, adding that “higher market capitalisation and greater liquidity will attract big foreign funds and investors».

“As a country we must bring in higher quality technology, best-in-class processes and improve the skill set of our talent pool to be internationally competitive. If this is our aspiration we must pave the way from a regulatory perspective to enable world leaders in specific industries to either setup in Sri Lanka or take controlling stakes in listed companies to develop our local companies and take them to the next level. At present one of the options is a very slow burn whilst the controlling stake is not an option at all.

“If you look at the top 10 listed companies, how many people can buy or sell control? Maybe a very few. To improve size and shape and productivity, Sri Lanka needs to have a bigger cluster. Singapore transformed Marina Bay by easing restrictions and attracting a host of like-minded companies to develop that infrastructure in terms of property assets.”

Another point stressed by Hardy and Archie was that the capital of companies, conglomerates and family wealth offices on their balance sheet is tied up in land and buildings. Given the fact that borrowing cost is around 16-17%, the balance sheets are stretched. 

“They don›t have the capacity or new capital for the next growth phase. If these segments can do a sale and long lease back arrangement, instead of borrowing at high cost, they can free up capital for expansion and next growth phase. This will trigger a wider economic growth scenario with more jobs and income to people, which the Government is keen to ensure. For this to happen we need a higher degree of foreign investors.”

The duo also pointed out that whilst free hold land issue remained very sensitive politically, “it is the exact point which the Government needs to decide whether it sincerely wants FDIs or not to usher greater development”.

“The sensitivities may be valid if small plots of land from individuals are being grabbed by foreigners, but via a new listed entity or existing listed entities, foreign investment will be for larger development purpose such as socio-economic infrastructure including affordable to mid-tier housing, leisure, mixed developments office space and industrial warehouses,» they emphasised.

“Sri Lanka is a very compelling destination within emerging markets. This is most certain for long-term property development, especially infrastructure in the property space such as office space, industrial warehouses, for which existing locked-up capital must be freed,” Steradian Capital co-founders added.

They dismissed the notion that the property sector is experiencing a bubble. Steradian is of the view that from a critical evaluation Sri Lanka remains underdeveloped, hence scope for further growth in the property market is logical. 

“For the envisaged demand 10 years from now, we will need more capacity – be it office or industrial warehouse space, leisure properties or affordable housing,” they added.

*Reference - [Published by Daily FT](https://www.ft.lk/top-story/Delay-in-2017-Budget-move-locks-billions-of-capital-in-listed-firms/26-642061/)*

A near year-long delay in gazetting a 2017 Budget-approved liberalisation move is locking up billions of capital in listed firms and discouraging a higher inflow of foreign investment into the country, according to property sector experts.

Delay in 2017 Budget move locks billions of capital in listed firms

AV15, also known as Alexandra Villas, is the latest endeavour by the group operating the trendy W15 beachfront boutique hotel in Weligama. Keeping up to its reputation of providing sophisticated hospitality for the new age traveller, AV15 is its version of contemporary city living. With a collection of designer townhouses, it aims to provide a stylish home away from home. The official launch of the AV15 was held recently with a distinguished gathering at the venue – Pix by Indraratne Balasuriya.

*Reference - [Published by Daily FT](https://www.ft.lk/ft-click/av15-contemporary-city-living/15-574576)*

AV15, also known as Alexandra Villas, is the latest endeavour by the group operating the trendy W15 beachfront boutique hotel in Weligama. Keeping up to its reputation of providing sophisticated hospitality for the new age traveller, AV15 is its version of contemporary city living.

AV15: Contemporary city living

W15 Weligama is the latest boutique hotel to open in Sri Lanka. It offers 10 exclusive and individually themed bedrooms. Each room has its own unique character and flavour waiting to be discovered and enjoyed by the guests.

W15’s inimitable dining experience, discreet attentive service, cutting edge design and architecture as well as the evening entertainment make it the place to be in Weligama Bay.

In this interview W15 Director Isabel  Jamaldeen shares the mantra of W15. Following are excerpts:

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__Q: What made you capitalise on the concept of the boutique hotel?__

A: The idea of a boutique hotel was always the way forward for us. We wanted to create an environment where guests would feel the comforts of luxury accommodation and service. 

Keeping the number of rooms on a smaller scale means guests can enjoy the privacy and seclusion of our pool, gardens and restaurant while being just one step away from the lively surf culture Weligama Bay has to offer. Many of our rooms give onto a seafront view. This provides a perfect intimate setting to gaze at the breath-taking Sri Lankan sunsets that we are so lucky to bear witness to every evening.

---

__Q: What makes W15 and your concept stand out from the other many boutique hotels around the island?__

A: W15 stands out from other hotels not only in Weligama Bay, but also island wide, in its uniqueness, style and quality of service. Our main focus is to create a bond with our guests. A great deal of thought and planning has gone into the design of the rooms and the general aesthetics of the hotel. We strive for perfection and settle for nothing less.

---

__Q: What is it you want people who stay at W15 to experience?__

A: Guest relationship is our primary focus. All our guests experience a new level of customer service catering to their every need and desire. Attention to detail is paramount! Extensive research is performed by our team to provide that special touch upon arrival. In reality, our goal is to create a connection with the guests before they even set foot in the hotel. During their stay, we listen to our guests; our staff has learnt to pick out any detail that could really make a difference to their stay. From our guest reviews on TripAdvisor it has become clear that the personal feel of the hotel is what guests value the most. In conveying this, we have now been rated no.1 hotel in the bay, and this is before our official launching party! This is why we have such a high guest return rate.

---

__Q: How do the local communities benefit from your presence in their small towns?__

A: In proportion to the number of rooms we have on offer, we are employing a very large local staff. Thus, we provide excellent employment prospects for the local community. Our staff gain valuable skills through our extensive training programs, making them that much more employable. Although, we are a relatively new business our staff retention rate is no less than 100% for two reasons – firstly each member of the personnel are individual stakeholders in the hotel. Therefore, our employees understand that the more they invest themselves in the hotel, the more they will get out of it. Secondly, we focus on ensuring that our staff progress internally. We recruited only driven candidates whose potential could be fully extracted. Therefore, the idea of a promotion is never out of their reach. 

We really value our staff at W15: meals and accommodation are provided and tips are sufficient to cover their daily cost. That way their full salary and service charge is a saving for them. This is just another example of how our staff can plough back into the local community. Furthermore, we are helping raise the standards of Weligama Bay by providing a next level of accommodation. Finally, as Weligama attracts all levels of surfers, we are not only providing surf lessons with very keen students but, most importantly, we have found that local and foreign surfers are learning from each other.

---

__Q: What would you say is your mantra at W15?__

A: Attention to detail and a personalised touch. At W15 we do not just go the extra mile to make our guests feel welcome; we do everything in our power to create a taste of paradise. W15 Restaurant is a vital player in the business. Our high calibre menu is one of the many components that maintain the standards of the hotel. You could enjoy any of our food and beverages while relaxing on the sun beds or chilling in the shisha garden. 

Connection is key for us. Our chef personally welcomes and introduces guests to what we have on offer in the restaurant. It is even possible for guests to hand pick sea food that may have attracted their eye and bring it back to the restaurant for it to be cook to the individual taste. Anything is possible at W15.

---

__Q: What are the features/components/elements that you look for when you choose a location for your properties?__

A: When scouting a beach property it needs to have certain invaluable characteristics: swimmable water, soft sandy beaches, white sand, and ideally it should be on a secluded bay. As has been mentioned, we capitalise on attention to detail and on providing our guests with a ‘home away from home’ feel. Therefore, when selecting a location you want to be asking yourself what is it that is needed to meet these goals. Where would be the perfect spot for you to feel both seclusion and a touch of local culture? 

It is a balance between swimmable water and great surf, privacy but not exclusion. Ultimately we are all looking for the same thing in a holiday destination! These features have all been encompassed in this wonderful spot in Weligama. It certainly does tick all the boxes.

---

__Q: With W15 slated for success, can you share your plans of other property developments in the near future?__ 

A: Alongside W15, we are also launching high quality villas at the heart of Colombo in Alexandre Villas 9 (www.av15.lk). This is a 24-room property off Marine Drive. Similarly to W15 and a recurring theme in our properties, all rooftops at AV15 give onto a stunning view of the Indian Ocean. AV15 caters to like-minded travellers and businessmen looking to explore and operate in Colombo.

*Reference - [Published by Daily FT](https://www.ft.lk/article/511739/Latest-boutique-hotel-W15-Weligama-to-wow-guests)*

W15 Weligama is the latest boutique hotel to open in Sri Lanka. It offers 10 exclusive and individually themed bedrooms. Each room has its own unique character and flavour waiting to be discovered and enjoyed by the guests.

Latest boutique hotel W15 Weligama to wow guests

Sri Lanka Steradian Capital, a privately owned real estate development and consultancy business, unveiled plans for an apartment complex with an investment of 2.5 billion rupees targeting middle-income young professionals.

“The vision for the project comes from our desire to improve the affordable and professional housing sector in Sri Lanka, as we have identified a need for it. Therefore, we always try to handpick land parcels in areas of high density where there is a need to serve and improve the lives of the local community,” Hardy Jamaldeen, a director of Steradian Capital said.

“Young couples who have a joint income of 200,000 per month can afford to buy this apartment.”

The unveiling ceremony was held at the Taj Samudra, Colombo on Thursday.

Jamaldeen added that there is an oversupply in the luxury apartment segment in the country but less attention is given for developing products for the high-end middle class segment.

“The activity is in the higher end of the market. In my view there is an oversupply of that stock. There might be investment groups that can buy these luxury apartments but they also have a limit to what they can accumulate. But if the economy kicks off and foreigners come in the situation may level out. Otherwise I have a feeling that there is going to be an issue in that segment of the market,” Jamaldeen said.

“But where the lower end, there is not enough supply. The culture at the moment is bold young professionals. But they can’t afford to buy these luxury apartments and even to buy in from Colombo, so here this is an opportunity.”

Located in Colombo 09, Mulberry Residence, is set to transform simplicity into quality and sustainability, the builders say.

Consisting of three towers, each over 15 floors, the ground to 2nd floors, consist of a connecting podium dedicated towards a reception and parking, along with 11 residential floors (3rd -13th floor) and a roof top entertainment space, boasting two swimming pools, a gymnasium and children’s play area (14th floor), is expected to be completed by the end of January 2018.

The apartments range from 1,000 – 1,600 sq.ft, with a mixture of 2-3 bedrooms.

The development of the apartment complex will be in collaboration with the Yanjian Group, one of the top 250 construction companies in the world who will take 24 months to complete.

The apartment building includes facilities such as 24-hour CCTV camera surveillance to all its entrances and the car park, a rooftop entertainment space and landscaped garden with a walkway that includes children’s play area and two separate rooftop swimming pools and gymnasiums, exclusively for males and females with much respect given towards privacy.

“Our main focus is Sri Lanka and we have in-depth knowledge and experience of the local market. Therefore we believe that there is a huge void in the market and less being done towards young professionals and aspiring families. We also believe that our project actually serves a purpose and has an end user, as we consider it a joint venture between the developer and purchaser,” said Archie Warman, a Director of Steradian Capital.

Many banks namely, Pan Asia Bank, Sampath Bank, Commercial Bank, Bank of Ceylon and HNB have already come on board to extend their support for loan facilities at very attractive interest rates and several other major banks are expected to come on board in the near future.

The company said about 30 units have been already booked since the project launched.

*Reference - [Published by Lanka Business Online](https://www.lankabusinessonline.com/rs2-5bn-mulberry-residence-for-young-professionals/)*

Sri Lanka Steradian Capital, a privately owned real estate development and consultancy business, unveiled plans for an apartment complex with an investment of 2.5 billion rupees targeting middle-income young professionals.

Rs. 2.5 Billion Mulberry residence for young professionals

Sri Lanka has undergone a tumultuous political upheaval over the course of the last year, and with it, investor confidence in the island nation has been in a state of flux.

Steradian Capital on the march to serve real estate boom

The island of Sri Lanka’s capital markets are going through a period of high capital investment. With the end of a 26-year civil war in 2009, the country is opening up tourism, international shipping, international trade and scaling up domestic businesses.

Real Estate Gems In Sri Lanka with Steradian Capital

Steradian Capital, a privately owned, real estate development and consultancy business, unveiled its plans for an affordable apartment complex, at a ceremony that was held at the Taj Samudra, Colombo recently.

Located in Colombo 09, Mulberry Residence, is the latest housing complex that is set to transform simplicity into quality and sustainability. The development of the apartment complex will be in collaboration with the Yanjian Group, one of the top 250 construction companies in the world. The construction period (including piling) will take 24 months; ensuring customers will enjoy a fast construction period, from conception to tangible living. Commenting on the specialty and the vision of the project, Hardy Jamaldeen, a Directorof Steradian Capital said, "We are delighted and privileged to have the Yanjian Group as our construction partner as they are responsible for some of Sri Lanka's greatest construction projects."

"Having understood that development is much more than creating homes, we at Steradian Capital are committed to working with local people and communities.

The vision for the project comes from our desire to improve the affordable and professional housing sector in Sri Lanka, as we have identified a need for it.

Therefore, we always try to handpick land parcels in areas of high density where there is a need to serve and improve the lives of the local community."

"Our main focus is Sri Lanka and we have in-depth knowledge and experience of the local market. Therefore we believe that there is a huge void in the market and less being done towards young professionals and aspiring families.

We also believe that our project actually serves a purpose and has an end user, as we consider it a joint venture between the developer and purchaser," said Archie Warman, a Director of Steradian Capital

*Reference - [Published by Daily News](http://www.dailynews.lk/2015/12/09/business/mulberry-residence-transform-skylines-colombo)*

Steradian Capital, a privately owned, real estate development and consultancy business, unveiled its plans for an affordable apartment complex, at a ceremony that was held at the Taj Samudra, Colombo recently.

Mulberry Residence to transform skylines of Colombo

Mulberry Residence

Mulberry Ja-Ela

Mulberry Baseline

Mulberry Darley Road

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Lanka Realty Investments PLC operates within the residential, commercial and leisure markets. The organization prides itself in developing properties that are at the helm of their industries.

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