Singapore giant and property development specialist Keppel Land has described its entry into Sri Lanka via a joint venture with CT Holdings to build luxury condominiums as strategic and timely.
“Our first foray into Sri Lanka is strategic and timely given the country’s positive growth as well as with growing affluence amongst its population. The improved political and economic conditions also bode well for the country as it looks to attract more foreign direct investments,” Keppel Land Group CEO Kevin Wong said in the statement which announced the joint venture with CT.
“Sri Lanka is experiencing rapid growth and the sound fundamentals are expected to drive demand for homes. This is where Keppel, with our trusted brand and reputation as a premier developer, can meet the demand for well-located quality homes,” Wong added.
Keppel Land via its subsidiary Edmonton Ltd., has formed a 60:40 joint venture CT’s subsidiary CT Properties Ltd., for a $ 70 million (around Rs. 9 billion) venture to build about 260 high-end condominiums on a 1.25-acre prime site in the Kotahena.
Keppel Land is the property arm of Keppel Corporation, one of Singapore’s largest multinational groups with key businesses in offshore and marine, infrastructure, and property. Keppel Land is one of the largest listed property companies by total assets on the Singapore Exchange. Its total assets amounted $10.1 billion as at 31 March 2012.
The foray into Sri Lanka expands Keppel’s geographical reach in Asia which includes Singapore, China, Vietnam, Indonesia and India at present. It has a strategic focus on two core businesses of property development and property fund management.
With a pipeline of over 75,000 homes across Asia, Keppel Land said it is poised to tap on the demand for quality housing driven by homeownership aspirations.
One of Asia’s premier property companies, Keppel Land is recognised for its sterling portfolio of award-winning residential developments and investment-grade commercial properties as well as high standards of corporate governance and transparency.
In Singapore Keppel’s landmark developments include Marina Bay Financial Centre, Ocean Financial Centre and One Raffles Quay. It is also the developer behind world-class iconic waterfront homes at Keppel Bay and Marina Bay in Singapore. In property fund management Keppel Land has K-REIT Asia, a pan-Asian commercial real estate investment trust, and Alpha Investment Partners (Alpha).
In the joint announcement CT Properties Chairman Ranjit Page said, “Leveraging our in-depth knowledge and keen understanding of the local market, CT Properties looks forward to partner Keppel Land in their first project in Sri Lanka.”
“CT Properties has taken a very calculated approach in venturing into projects to ensure that we make a mark with each of our projects. Our latest initiative in this new environment aims to not simply ride the growth opportunity but bring international expertise and benchmarks to the industry and thereby make a long term impact,” Page added.
According to Page, the condominium market in Colombo is a growing segment, especially for high-end developments. “The stable government and positive economic outlook will contribute to higher disposable income, which will boost the purchasing power of local homebuyers and overseas Sri Lankans keen on the potential capital appreciation of well-located and high-end property developments,” CT Properties Chief added.
Targeted at the well-heeled local and overseas Sri Lankans, the development is located north of Fort, the central business district (CBD) of Colombo. It is well-connected via major roads and will provide residents easy and direct access to the CBD. The Kotahena area, where the new development is sited, is well-served by numerous amenities including schools, retail outlets, banks, medical facilities as well as sports and entertainment centres. Majority of the homes are also expected to enjoy panoramic views of the Indian Ocean.
Keppel Land’s participation in the proposed development is subject to the satisfaction of conditions precedent including but not limited to the joint venture company obtaining planning and regulatory approvals by the relevant authorities.