Sri Lanka’s Browns Investments acquires controlling stake of Serendib Hotels Plc
Browns Investments PLC (BI), which is the strategic investment arm of Sri Lanka’s LOLC Holdings PLC, recently announced the acquisition of the controlling stake of 55.65% of Serendib Hotel PLC (Serendib) for a consideration of Rs. 792 million.
With this acquisition, BI will hold 56.67% of voting shares and 53.48% non-voting shares of Serendib and the investment was made by BI’s subsidiary leisure company, Eden Hotel Lanka PLC, the company has said in a statement.
“The carefully-executed investment strategy of BI with a focus in the leisure sector building the optimum footprint is well positioned to capture the post-COVID growth in the tourism business. Building the construction business with complementary businesses and growth in the agriculture and plantations with expansion into value chain development will position Browns Investments as a strong and robust diversified Group within the LOLC Group with strong shareholder value creation in the medium to long term,” Browns Investments Chairman Ishara Nanayakkara has been quoted as saying in the local media.
With this investment, BI will add Club Hotel Dolphin, Hotel Sigiriya, Avani Bentota Resort and Lantern Beach Collection, Mirissa along with their management companies to BI’s existing leisure portfolio, The Eden Resort and Spa in Beruwala, The Paradise Resort and Spa in Dambulla, The Calm Resort and Spa in Passikudah and Dickwella Resort and Spa, Sheraton Kosgoda Turtle Beach Resort managed by the Marriott Group and Riverina Resort in Beruwala with 375 keys, which is under construction, the Daily FT has stated.
In the Maldives, BI’s leisure properties under construction include, Nasandhura Palace Hotel in the city of Malé and Bodufinolhu in the Ari Atoll. Nasandhura Palace is in the most coveted location in the city, nearing completion and will be ready for occupancy in the year 2021 and is a mixed development consisting of 118 luxury apartments, a five-star hotel with 135 keys and an upscale mall with shopping and entertainment. Bodufinolhu, an international four-star property, once ready for commercial operations in 2021 will have a mix of water villas, beach villas and beach suites accounting for 100 keys.
The Group also has the lease rights to three islands reclaimed in North Malé, Bodufaru, Kaafu Atoll, to be developed as three five-star properties with a total of 470 keys.
BI had reportedly entered into a management agreement with Barceló, one of the largest global hotel operator chains to manage The Eden Resort and Spa, The Paradise Resort and Spa, Nasandhura and Bodufinolhu. Further, Barceló is to make an equity investment of 30% into the development of Bodufaru three island project.
The new investment will expand the leisure footprint of BI and the company is of the view that this will be a strong growth sector post Covid-19, gaining momentum in the latter part of 2021.
The company believes that the new investment will complement its long-term leisure strategy of building a diverse leisure portfolio in Sri Lanka and in the Maldives.
Over the years, BI has developed its diverse investment portfolio, expanding its operations into construction and related businesses, plantations and other strategic investments.
OSL take:
The latest acquisition by Sri Lanka’s Browns Investments in the country’s leisure business is indicative of the growing opportunities and business potential in Sri Lanka’s tourism industry. In fact that country’s tourism industry is predicted to be one of the key economic sectors to show a quick rebound following the blow by the global Covid 19 pandemic. Sri Lanka is listed as a must visit destination by several leading global travel publications and has received the safety and hygienic certification that would attract many post Covid travellers. Given the expansion in Sri Lanka’s tourism industry, foreign businesses/investors could explore opportunities in the country’s tourism industry.
| Article Code : | VBS/AT/22122020/Z_3 |