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3 high-value lands offered to investors

20 Sep 2021

  • UDA offers plots on 99-year lease basis in Colombo
By Shahaen Vishak Three high-value plots of land on D.R. Wijewardena Mawatha, Colombo 10, have been advertised for investment on a 99-year lease basis by the Urban Development Authority (UDA). In an advertisement published by the UDA on Sunday (19), the Authority issued a Request For Proposals (RFP), calling for tenders with regard to the lease of said lands. The plots on offer include: The Sri Lanka Exhibition and Convention Centre (SLECC) at No. 12, D.R. Wijewardena Mawatha, for which the base value is quoted at approx. Rs. 3.7 billion; the People’s Bank Queens Branch at No. 38, D.R. Wijewardena Mawatha, for which the base value is quoted at approx. Rs. 1.4 billion; and the Sathosa Warehouse Complex at No. 40, D.R. Wijewardena Mawatha, for which the base value was quoted at approx. Rs. 1.67 billion. Pre-bid meetings for all three properties are scheduled to be held at the UDA Auditorium in Battaramulla on 7 October 2021, while the deadline for proposals on said properties is 28 October 2021. A number of other high-value properties in Colombo were similarly planned to be opened up to investors through Selendiva Investments Ltd., a state-owned property development entity that was established under the UDA in March 2020 to revive underperforming state-owned ventures as public-private partnerships (PPPs). These properties include the Grand Oriental Hotel (GOH), the York Building, the Gaffoor Building, the General Post Office, the Cey Nor Seafood Restaurant near the Lotus Tower, the Water’s Edge mixed development, Hilton Colombo, and the Grand Hyatt Colombo, which are notably located in the vicinity of the Colombo Port City. Investment was to be sought by listing shares in the relevant holding companies under Selendiva Investments on the Colombo Stock Exchange (CSE), although this process is expected to take a considerable amount of time. Speaking to The Sunday Morning in June, State Minister of Urban Development, Coast Conservation, Waste Disposal, and Community Cleanliness Dr. Nalaka Godahewa had said: “The listing process itself has a long procedure to follow, and as the starting point, we have got the concept agreed upon. Now, there has to be a valuation, discussions with the CSE, and there has to be brokers appointed. So, it is a long process.” Due to the high value of the properties earmarked for development by Selendiva Investments, the decision to vest such control in the firm faced scrutiny and criticism from various parties, including the United National Party (UNP), which had urged the Government to publicly reveal the details regarding the operations of Selendiva Investments, and the Janatha Vimukthi Peramuna (JVP), which had accused the Government of having ulterior motives of allowing Chinese firms to administer these areas due to their vicinity to Colombo Port CIty. State Minister Godahewa had, however, said that the Government would retain at least 51% ownership of all properties managed by Selendiva Investments.


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