Keppel Land in town

By Indika Sakalasooriya
A team of officials from Keppel Land, the property arm of the Keppel Corporation, Singapore, one of Asia’s premier property companies, has visited several Sri Lankan blue chips last week, including, Hayleys PLC, Aitken Spence and John Keells, The Bottom Line learns.According to sources, Keppel Land seems to be very much interested in property development prospects in Sri Lanka and is in the hunt for recognised conglomerates to establish partnerships in order to engage in property developments, both residential and commercial.
According to the firm’s website, set up in 1890, Keppel Land is one of Asia’s premier property companies, recognised for its sterling portfolio of award-winning residential developments and investment grade commercial properties, and high standards of corporate governance and transparency. It is also one of the largest listed property companies by total gross assets on the Singapore Exchange. Its total gross assets amounted to $6.6 billion as at end-June 2010.
Even though the entrance of firms like Keppel Land to Sri Lanka in the post-war scenario is obviously a positive development, it is not clear whether the country’s policy-front is ready to facilitate companies of such calibre.
Number of foreign and local companies who were interested in property development in Colombo have failed to do so or were compelled to abandon the idea due to the lack of land available for property development, as nearly 50 percent of the lands within the Colombo city limits is owned by the government.
Keppel Land is geographically diversified in Asia, with current focus on Singapore, China, India, Vietnam and Indonesia. The company has a strategic focus on two core businesses of property development and property fund management. The firm is also well known for its landmark developments such as Ocean Financial Centre and Marina Bay Financial Centre in the Central Business District (CBD).

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DEBENTURE ISSUE TO PARTLY FUND ‘PORT CITY’ PROJECT

By Azhar Razak

Following the example set out by the Urban Development Authority (UDA), Sri Lanka Ports Authority (SLPA) is likely to opt for a debenture issue to fund the much exaggerated ‘Port City’ project, which plans to change Sri Lanka’s map.

SLPA, which is in charge of building a new ‘port city’ adjacent to Colombo’s Galle Face Green, is expected to raise part of the required funding for the project through a debenture issue, of which the number are yet to be disclosed, a source close to the project said. The rest of the funds are expected to be raised through foreign borrowings, the source added.

UDA, another state run organisation successfully issued debentures to the Colombo Stock Exchange recently to raise Rs.5 billion to fund a housing project in the city of Colombo.

The proposed US $400 million ‘Port city’ project, which aims at expanding out to sea on reclaimed land with material dredged to build the Colombo South Harbour will add a further 300 acre land to the city’s western sea front.

“We are hoping that the project will kick off by at least the middle of next year and take around two to three years to complete,” SLPA Chief Engineer Planning and Development, Susantha Abeysiriwardena told The Bottom Line. He, however, declined to disclose anything material regarding the financial side of the project.

According to Abeysiriwardena, the sea is to be dredged up to one and a half kilo metre distance from the shore and would remain in parallel horizontally with the vertical length of the existing breakwater that is being built adjacent to the site, when complete.

“It has been projected that out of the 300-acre land that we can reclaim, around 200 acres will be utilised as useful area providing the basic infrastructure while the remaining 100 acres could be used to construct the high rise and low rise buildings for a commercial centre,” Abeysiriwardena said.

Sources said that Lanka Hydraulics Institute, providers of hydrographic and modelling services and the Moratuwa University are also involved in the planning.

Also envisaged is the extension of the Marine Drive (a road running parallel to the main Galle Road) from the Colpetty municipal ward into the land reclaimed from the sea, providing another approach road into the city.

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