Sri Lanka’s Browns Investments crosses Rs. 4 billion mark in turnover
Browns Investments PLC of Sri Lanka has reportedly crossed Rs. 4 billion in turnover recently as total market turnover was Rs 9.1 billion.
The company had earlier in 2020 gone for a rights issue at Rs 2 a share and the company and China Harbour Engineering Company (CHEC) recently signed a deal for a mixed development project in the Colombo Port City.
Meanwhile, Browns Investments PLC (BI) had recently acquired the controlling stake of 55.65% of Serendib Hotel PLC (Serendib) for a consideration of Rs.792 million. With this acquisition, BI is to hold 56.67% of voting shares and 53.48% non-voting shares of Serendib. The investment was made by BI’s subsidiary leisure company, Eden Hotel Lanka PLC, local media reports stated.
According to local media reports, with this investment, BI will add Club Hotel Dolphin, Hotel Sigirya, 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 Passikudha 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.
In the Maldives, BI’s leisure properties under construction include Nasandhura Palace Hotel in the city of Malé and Bodufinolhu in the Ari Atol. Nasandhura Palace is in the most coveted location in the city, nearing construction 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 Atol which is to be developed as three five star properties with a total of 470 keys.
BI had 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 and 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.
The milestone recorded by Sri Lanka’s Browns Investments is indicative of the strength and growth of the country’s private sector. The expansion in the company’s portfolio is also indicative of the growing business/investment potential in Sri Lanka’s key economic sectors. Also, Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country have made it a business hub in the South Asian region. All these are indicative of the business/investment opportunities in Sri Lanka as well as opening up possibilities of forming partnerships/joint ventures with local companies.
|Article Code :||VBS/AT/20210113/Z_3|