Sri Lankan realty investment company re-launched in a bid to expand operations and attract foreign investors
Sri Lankan realty company, Lanka Realty Investments PLC (formerly known as Ascot Holdings PLC), is reportedly making a fresh foray with the core vision of becoming the foremost listed real estate investment and development company in Sri Lanka.
The company has announced that it plans on attracting overseas investors merged with the local retail investors.
The Board of Directors of Lanka Realty Investments (LRI) has reportedly said it is encouraged by the growth prospects present in the real estate sector and pleased with the recent developments in the regulatory environment.
According to reports, 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 has been quoted as saying in the local media.
“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 has further noted.
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 had taken place amidst a challenging operating environment.
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, local media reports have stated.
OSL take:
The re-launching of the investment realty company gives a clear indication of the opportunities in Sri Lanka’s realty sector. The country’s real estate sector is on the rise and many local as wells as foreign companies have been engaged in investing in valuable real estate plots in Sri Lanka’s commercial capital, Colombo and its outskirts. Therefore, foreign businesses/investors could explore opportunities in Sri Lanka’s real estate sector and invest in it for good returns.
| Article Code : | VBS/AT/20181005/Z_4 |