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Colombo Land and Development Company completes sale of Liberty Arcade

24 Jan 2022

  • Sold to Seeview Property for consideration of Rs. 640 million
BY Shenal Fernando Colombo Land and Development Company PLC (CLND) has, by Colombo Stock Exchange (CSE) corporate disclosure dated 20 January 2022, announced the completion of the sale of its Liberty Arcade property to Seeview Property Developers (Pvt.) Ltd. for a consideration of Rs. 640 million.  In the corporate disclosure, CLND stated: “Upon the completion of the terms and conditions set out in the Sales and Purchase Agreement, the sale and transfer of the said property was concluded on 20 January 2022 at a consideration of Rs. 640 million.”  CLND had previously on 19 November 2021 disclosed in terms of Section 8 of the Listing Rules of the CSE, that it had signed an agreement with Seeview Property Developers (Pvt.) Ltd. to sell the 36.9 perches land area of Liberty Arcade for a consideration of Rs. 640 million, subject to the fulfillment of the terms and conditions set out in the said agreement on or before 31 January 2022.  However, as per the FY2020 Annual Report, the Liberty Arcade property was valued at Rs. 1 billion under the depreciated replacement cost method using the depreciated value of buildings and current open market value of land. Therefore, the sale of this property at Rs. 640 million represents more than a 36% discount on the property valuation published by the company less than 10 months ago and thus, represents a significant value for the investment by Seeview Property Developers (Pvt) Ltd. Furthermore, the exact motivations behind CLND’s sale of this property are currently unknown. The FY2020 Annual Report further set out that CLND has obtained a bank loan of Rs. 350 million from Bank of Ceylon, secured by mortgages over the Liberty Arcade property and the property depicted as Lot A in Plan No. 2303 at No. 282, R.A. De Mel Mawatha, Colombo 3. CLND is a real estate development company. The company is primarily engaged in leasing investment property under operating leases, developing investment properties, and renting developed properties in Sri Lanka. The company’s subsidiaries include Liberty Holdings (Pvt.) Ltd., Agrispice (Pvt.) Ltd., Anantaya Global Solutions (Pvt.) Ltd., and Liberty Developers (Pvt.) Ltd. The principal activities of its subsidiary companies are renting out developed property, cultivating plantation of teak and mahogany trees, IT solutions, software development, and e-marketing.


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