Chinese backed Port City project in Sri Lanka in discussion with investors for up to US$ 4 billion in investments
A Chinese-backed real estate project near Sri Lanka’s main port is in discussion with investors for up to US$ 4 billion in investments in its first phase, the Reuters news agency has published a report quoting the developer.
Reuters has stated that work on the US$ 1.4 billion Port City project by the China Communication Construction Company (CCCC) started in 2016 as part of Beijing’s ambitious plans to create a modern-day “Silk Road” linking Asia to the Middle East and Europe.
The project is expected to attract US$ 13 billion in investment over the next 20 years.
Liang Thow Ming, Chief Sales and Marketing Officer of CHEC Port City Colombo, the local company that handles the project for CCCC, has said 80% of the 269-hectare (665-acre) site had been reclaimed from the sea.
“We are on schedule to complete the reclamation and marine works by the second half of next year,” he has told Reuters in an interview, adding that roads, parks, and other infrastructure will be completed by 2020.
“There is a healthy level of interest. We are talking about hospitality, commercial offices, retail space, and residential. We have seen investors from Southeast Asia, India, the Middle East, China and Japan.”
He has declined to identify specific investors but said the Port City would see US$ 3-4 billion in investments “if everything comes true.”
“We are looking for partners with international image on the project. There is a healthy demand at the moment,” he has added.
The Sri Lankan government has said a consortium led by state-run China Harbour Engineering Company will invest US$ 1 billion to build three 60-storey office towers on reclaimed land at Port City, while CCCC is expected to invest US$ 800 million to build an underground road network.
Sri Lanka has been preparing legislation with tax incentives to lure investment to the Port City, which includes housing, marinas, health facilities and schools.
CHEC Port City Colombo aims to deliver the first site for construction by the end of 2018.
OSL take:
The interest shown by investors to invest up to US$ 4 billion in the Chinese backed Port City in Colombo is an indication of the level of interest shown by the foreign business community on the proposed financial city. The commitments for the first phase of the project would continue to grow as the project progresses. The reclaimed land in the Colombo sea area has been earmarked as prime business land in the future. Therefore, foreign businesses/investors could look at investing in purchasing properties in the Port City.
| Article Code : | VBS/AT/10052018/Z_1 |