Construction industry hits a brick wall

Construction industry representatives say that the recent cement price increase would have a devastating effect on their projects.�“The current situation is a blow to the entire construction industry, as the recent price increase is the second for this year”, Sri Lanka institute of Architects Registration Board Chairman Architect Jayantha Perera told the Sunday Times.
He said not only contractors, but laborers in the industry, such as bricklayers and helpers, as well as subcontractors who are raw material providers, cement product providers and others involved with the construction industry, will be badly affected by the price increase.

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(Source: Sunday Times)

Hyatt International to manage Hyatt Regency Colombo at Celestial Towers

Hyatt International South West Asia Ltd, affiliated to Hyatt Hotels Corporation entered into a management agreement with Sinolanka Hotels and Spa on Friday to manage the Hyatt Regency Colombo hotel at the state-acquired Celestial Residencies, better known as Celestial Towers, at Kollupitiya.

The site is one of the iconic properties of collapsed Ceylinco group of companies and was acquired under the Revival of Under performing Enterprises and Underutilized Assets Act as an under performing asset.

The project, expected to be completed by December 2013, will be developed as a five-star luxury hotel complex consisting of approximately 565 rooms with around 94,000 square meters in built up area and 43 stories in height.

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(Source: Sunday Times)

Indian company gets huge project in Fort

One of the City’s major landmarks is to be given to an Indian company for development on a 99-year lease for more than Rs 4.9 billion.

The land encompasses the Transworks House, a colonial building that once housed the former Public Works Department (PWD). The building is documented as a place of archaeological value.

A recommendation by President Mahinda Rajapaksa for this deal has been endorsed by the cabinet. It will see the local subsidiary of Krrish Group with its registered offices in New Delhi undertaking a “mixed development project” with the construction of a high rise “Transworks Tower.”

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(Source: Sunday Times)

SRI LANKA INTRODUCES NEW LAND POLICY TO PROMOTE TOURISM

Sri Lanka has introduced new land policy to attract foreign investment for tourism, a minister said on Wednesday.

Lakshman Yapa Abeywardena, deputy minister for Economic Development, said the Cabinet has given nod to lease out state lands for hotel projects for foreign investors under 99 years lease agreement.

“The lands will be leased out on the prices valued by Government Chief Valuer,” Abeygwardena said.

Sri Lanka’s robust post-war tourism sector continued to grow, posting a 7.8 percent rise in July from a year earlier, according to government data.

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(Source: Ada Derana)

Sri Lanka’s Shaw Wallace seeks 99-year lease on prime Colombo land

Sri Lanka’s Shaw Wallace and Hedges PLC plans to secure a 99-year lease on its Colombo property from the Urban Development Authority, a report said. An extraordinary general meeting of shareholders has been fixed for September 03, to approve the sale of 264.65 perches of prime Colpetty land for 1.85 billion rupees in order to continue the stalled development of "Mayfair City" – two 30-storey towers comprising 307 luxury residential apartments.

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(Source: LBO)

Indo-China battle looms over prime property in Colombo

India has lodged a strong protest with Sri Lanka over the allocation of a prime Colombo property to a Chinese company though it was earmarked for India.The protests were delivered both in New Delhi and Colombo, an External Affairs Ministry source said yesterday. He was speaking on grounds of anonymity since EAM officials are not allowed to talk to the media.

The 287-perch property, once occupied by Shaw Wallace and Hedges, with frontage both to the Galle Road and the Duplication Road, has been given to the Chinese aircraft manufacturing firm CATIC or China National Aero Technology Import and Export Corporation. It is for what has been described as a “flagship project”. It is not immediately clear how much the Chinese company paid for the deal.

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(Source: Sunday Times)

Latest Sri Lanka House Prices - Recession bites Commercial properties?

The LankaPropertyWeb.com property price index for Q2 2012 is out with prices showing mixed results once again.

Key summary of the statistics are:

• House prices and land prices are up while apartment and commercial building sale prices are down
• Overall land prices continue to rise for the 2nd consecutive quarter while land in Colombo and North steam ahead
• House prices in Colombo and North fall while there is an overall increase in the house prices
• Commercial property sales and rentals take a battering as both have spiraled down

For the Full list of the latest LankaPropertyWeb Property Index visit www.LankaPropertyWeb.com