Sri Lankan real estate investment company says its rights issue has been fully subscribed

Sri Lankan real estate investment company says its rights issue has been fully subscribed

A Sri Lankan real estate investment company, Lanka Realty Investments, has reportedly said in a stock exchange filing that its rights issue to raise Rs. 632 million 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 has been quoted as saying.
The stock exchange announcement has stated that 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 has been reported in the local media and it states Lanka Realty Investments was encouraged by the growth prospects present in the real estate sector and is 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 has said.
“We are keen on re-commencing our leisure operations via renewed investments in our leisure assets in Yala and Ambalangoda.”

OSL take:

The complete subscription of the rights issue of a Sri Lankan real estate investment company is indicative of the positive growth in the country’s real estate sector. The constant development taking place in Sri Lanka and the improvements in its ease of doing business environment have further boosted the country amongst the foreign business community. This in turn has resulted in a growth in Sri Lanka’s real estate sector. Therefore, foreign businesses/investors could explore opportunities of investing in Sri Lanka’s real estate sector given the growth of value in the sector.

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Article Code : VBS/AT/20181012/Z_2

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