Sri Lanka’s Browns Group asset in the Maldives receives investment from Spain’s Barcelo Group
Sri Lanka’s Browns Group in a filing at the Colombo Stock Exchange (CSE) has reportedly noted that Spain’s Barcelo Hotels Mediterraneo S. L., which is a subsidiary of the Barcelo Group, is to invest US$ 30 million in Bodufaru Beach Resorts Pvt Ltd in the Maldives owned by the Browns Group.
Accordingly, Barcelo Group, which operates 251 hotels in 22 countries, is to own 33.33 percent of shares in Bodufaru Beach Resorts following the investment and the Spanish firm had signed a share subscription and shareholders’ agreement with the Browns Group last Thursday (7).
The Browns Group currently owns 99.96 percent of the shares in Bodufaru Beach Resorts, through four group companies.
According to local media reports, Bodufaru Beach Resorts owns 50-year leasehold rights to three properties; Bodufarufinolhu Island in the Raa Atoll, Bodufinolhu in South Ari Atoll and a plot of lagoons in the Male Atoll.
Coast conservation and reclamation work in the Male Atoll lagoons have recently been completed, and will be the first resort to be constructed, Browns Group Director Kapila Jayawardana has told EconomyNext.
The Bodufarufinolhu Island reclamation work is around 35 percent complete, while physical work is yet to start at the Bodufinolhu Island, he has noted.
“The Maldives is a highly sought after environment for leisure in the region and that’s why we are making significant investments there,” Jayawardana has added.
OSL take:
The investment of funds in Sri Lanka’s Browns Group by a Spanish company is indicative of the strength and growth of the country’s private sector. Sri Lanka has become the ideal business destination in the South Asian region given its geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country. Foreign businesses/investors could look at possibilities of forming partnerships/joint ventures with local companies and work towards expanding the respective business venture utilizing the benefits enjoyed by Sri Lanka.
| Article Code : | VBS/AT/20191114/Z_3 |