Yahapalana-era proposal becomes first FDI for new Govt.

• Finance Ministry release states $ 250 m mixed development project by Perennial Real Estate Holdings as first FDI under new Govt. 
• Cabinet recently approved project putting up 30-storeyed Commercial Tower with 700 residencies in State-owned land behind Shangri-La Hotel
• In 2018 UPFA criticised original proposal during debate over Lands Act

Finance Ministry yesterday claimed that a $ 250 million mixed development project approved by Cabinet a fortnight ago will be the new Government’s first FDI though the original proposal got the nod under the Yahapalanaya regime in 2018 and came under flak by the then Opposition. 

In a statement Finance Ministry said the first foreign investment under the new Government of President Gotabaya Rajapaksa is to be launched shortly. 

This investment will be made on a plot of land located between the Beira Lake and Shangri-La Hotel on State-owned land at Baladaksha Mawatha in Colombo by a foreign investor called Perennial Real Estate Holdings. 

This is a $ 250 million foreign investment project that will see the construction of a 30-storey commercial tower inclusive of 700 new residencies. In addition it will also have facilities for retail and food outlets.

The Cabinet of Ministers has approved the proposal made by Prime Minister Mahinda Rajapaksa as the Minister of Finance, Economy and Policy Development to facilitate investment activities for the relevant company.

With the signing of the agreement soon, the land for the project will be leased out to the company and the Government will receive $ 43 million as the payment for the lease, the Finance Ministry statement added.

However in August 2018, the then Yahapalanaya Government was criticised for approving the same project during the debate over the controversial Lands Act. 

The UPFA Parliamentarian Kanchana Wijesekera in August 2018 criticised the then Development Strategic and International Trade Minister Malik Samarawickrama for championing the same project. 

According to a news report (www.newsfirst.lk/2018/08/03/politicians-cry-foul-over-maliks-singapore-land-deal/), MP Wijesekara then stated that this proposal was among the Land Acts presented and the aim of this Act was to provide the ownership of this land to the Singaporean company Perennial Real Estate Holdings Ltd. MP Kanchana also stated that the State valuation for this land was Rs 12.5 million per perch and if the Government called for tenders to lease out this land, they would be able to get a better price.

Perennial Real Estate Holdings is an integrated real estate and healthcare company headquartered and listed in Singapore. As a real estate owner, developer and manager, Perennial focuses strategically on large-scale mixed-use developments and has a presence in China, Singapore, Malaysia, Indonesia and Ghana with a combined portfolio spanning about 65 million square feet in gross floor area.

In a Board declaration in January, Perennial Real Estate Holdings said together with its subsidiaries (‘Perennial Group’) has, through its wholly-owned subsidiary, Perennial BSL Ltd. entered into a joint venture in Sri Lanka with a 40% interest in PREH Properties Ltd., a company incorporated in Sri Lanka. The remaining stakes are held by other parties, including a local partner. PREH Properties will invest in real estate in Sri Lanka.

Perennial’s 40% share in PREH Properties amounts to an investment of Rs. 200 million (approximately S$ 1.49 million).

In Singapore, Perennial has invested in and manages prime iconic properties located in the Civic District, Central Business District and Orchard Road precinct, such as Capitol Singapore, CHIJMES, AXA Tower, TripleOne Somerset, Chinatown Point and House of Tan Yeok Nee.

Perennial is also a healthcare services owner, operator and provider focused predominantly on China. 

In China, Perennial is a dominant commercial developer with sizeable mixed-use integrated developments. Four of Perennial’s developments, Chengdu East High Speed Railway (HSR) Integrated Development, Xi’an North HSR Integrated Development, Tianjin South HSR Integrated Development and Kunming South HSR Integrated Development, are regional healthcare and commercial hubs which are situated adjacent to four of the country’s largest HSR stations and incorporate medical, healthcare and eldercare facilities. 

Other landmark projects in Perennial’s portfolio include Beijing Tongzhou Integrated Development, Shenyang Longemont Integrated Development and Zhuhai Hengqin Integrated Development.

Perennial’s healthcare business services include hospitals and medical centres, eldercare and senior housing, and supporting specialties in genomics and diagnostic imaging, plastic surgery and aesthetics as well as maternal and child health management.