Crystal Property Group executes business model unique to Sri Lanka’s real-estate landscape

Crystal Property Group (CPG) was established in November 2016 but is already winning plaudits for successfully executing a business model that’s unique to Sri Lanka’s real-estate landscape. In 2021 alone, CPG generated over Rs. 3.5 billion worth of sales commitments, and made a conscious decision not to make any further sales locally, so they must be doing something right.

CPG’s founder Dr. Dinuk Jayasuriya, a Sri Lankan who has lived in Australia since he was three years of age, talks about CPG’s genesis. In places like Australia and Europe and even in other places of Asia such as Indonesia and Thailand, high quality holiday homes in iconic locations outside the major cities are the norm, not the exception. Yet in Sri Lanka, iconic holiday homes outside the major cities are the exception, not the norm.

“When we started CPG, it was clear Sri Lankan real-estate developers were focusing primarily on Colombo. Indeed, while tourism was growing strongly in Sri Lanka, no company had truly grasped the opportunity to operate in the ‘holiday home’ space outside Sri Lanka’s major cities. Investors wanted to own their own slice of Sri Lanka’s tourism landscape and were waiting for a trusted vehicle to provide them with such an opportunity,” says Dr. Jayasuriya.

CPG focuses on the leisure-based real-estate market. But CPG are not just another property developer. They are that and a hospitality provider. Moreover, CPG understands there is a gap in the market for investors, particularly expatriate investors, who wanted a turnkey fully furnished holiday home, which could take on new life as a resort upon completion and within the buyers’ wishes. Some people struggle securing land without title issues, receiving development permits, project managing the construction, renting out a finished holiday home and ensuring security for the property. While this is problematic for locals, it is extremely problematic for expatriates.  Importantly, after their apartment or villa is constructed, CPG provides owners with the option of using their unit themselves entirely, or having an award-winning hotel provider, Teardrop Hotels, manage the unit on their behalf. Investors are only charged ongoing fees if their units are rented out and generate yield. CPG also hold inventory in all their projects so other apartment and villa owners understand that CPG are ‘in it’ with them for the long term.

CPG’s model was validated with its first project, Crystal Sands, a 25-unit apartment complex which began construction in September 2019 and completed in January 2022. CPG are proud that among other property developers in Sri Lanka’s South Coast, Crystal Sands was one of the last such projects to start and is the first to finish. CPG are targeting only two more sales of these apartments. 

CPG CEO Reza Magdon-Ismail states, “Without appearing immodest, Crystal Sands is a superior product to any other comparable offering on the south coast. Our focus with Crystal Sands now is ensuring we generate a strong yield for our investors. They are our ambassadors going forward and backed us from the start.” 

CPG’s second project The Six, six high end villas in Midigama, was launched for sale in April 2021 and sold out before breaking ground in October 2021. Each villa is valued at Rs. 300 million. CPG’s third project, Digana by CPG, comprising 24 high-end villas overlooking the Victoria reservoir, was launched for sale in December 2021. It was 90% sold within the first week of launch, generating over Rs. 2.2 billion worth of sales. CPG will only sell four more villas and will market these internationally. 

Each CPG product has the same condo-hotel concept but are also unique. Crystal Sands is a beachfront 10-story serviced apartment complex targeted at people who wanted a holiday home near Galle with all the amenities of a hotel. The fully furnished apartments – or ‘Sky Villas’ –all have smart home integration, a plunge pool on the balcony and boast sunset ocean views. Crystal Sands’ iconic rooftop restaurant and infinity pool, and ground floor gym, round off its amenities. From a product offering Crystal Sands is targeted at families and groups of friends who want a comfortable location near Galle to stay. The two-to-three-bedroom Sky Villas allow for this, as does Crystal Sands’ signature 4,000 square foot Presidential Suite.

The Six, when completed in 2023, will represent six of the most luxurious villas on Sri Lanka’s South Coast. Located in Midigama, five minutes’ drive from the iconic Weligama Bay, ‘The Six’ managed directly under the Teardrop Brand has potential written all over it. Built on the premise of exclusivity; The Six is a collection of palatial Residences and no two villas are the same. Drawing inspiration from six beaches around the world to inspire the curation and overall experience of each villa, a buyer of The Six is receiving a one-off product that is of international standards and world-renowned architectural merit through the lens of Architect Chamika de Alwis.

Digana by CPG represents CPG’s most ambitious project yet. It comprises 24 villas built on a mountainside, complete with a Country Club fit for royalty including Restaurants & Bar, Spa, Wellness, Business Lounge, Tennis Court and much more; all leading down to a lakehouse with a speedboat to whisk you away to your tee time at the Victoria Golf Club. CPG’s mission is to build responsibly and create structures that are organic with the landscape, and that is why the villas are in four permutations, each named after the architectural nuance that dictates its style. Akasha (Sky) Adya (Earth), Aranya (Forest), Arnav (Water). Embracing the elements that make the Central Kingdom so majestic is the ethos behind Digana by CPG; to treasure what resources we have and create the perfect vessel to experience this land of kings.

CPG has also begun beta testing its first foray into an interconnected experience throughout its brand. With ‘Home Around the Pearl’, buyers of one property are connected to all current and future CPG developments and Teardrop Resorts. As each product begin a new life upon launch, as a resort and tourist destination, a buyer is entitled to discounted stays, dining, wellness, use of facilities and privileged access to all amenities. This has been crafted to preview a Master Plan, one that is focused on Connectivity, Sustainable Initiatives, Contemporary Architecture, Cultural Preservation and guidelines of Ethical Practice for the future of CPG, currently in the works and expected to launch sometime in the third quarter of 2022.

CPG’s success in such a short period of time is driven by a few factors. The first is a group of initial investors and friends who backed CPG’s vision and bought Sky Villas at Crystal Sands. Without their support, particularly during a constitutional crisis, Easter attacks and COVID, CPG would not be where it is today. 

A second driver of success is a core team of industry professionals who delivered on the promise that is CPG. Led by CEO Reza Magdon-Ismail, they comprise over 60 years combined experience in engineering, economic assessment, finance, management and design. CPG has now become a ‘destination company’, with more high performing staff slated to join the company in 2022. Importantly, unlike other property developers, CPG has its own in-house project management team to ensure quality, efficiency and cost-effective delivery of its real-estate offerings.

A third driver of success is its Executive Chairman, Kumar Sangakkara. That CPG is the only company at which Kumar Sangakkara is its chair says much to the company’s potential. While Kumar’s involvement brought recognition to CPG, he is also actively involved in conceptualising the products, selecting locations, and pushing the team to strive for excellence. Kumar Sangakkara states trust is a key element in our work. “We aim to under promise and over deliver. Our clients come first in all our calculations, and we strive to ensure our product exceeds their expectations. There has been some negativity regarding the real-estate industry in Sri Lanka both in terms of delivery and quality. CPG will rise above that noise and become Sri Lanka’s most trusted brand in leisure-based real-estate.” 

Another driver of success is the company’s focus on sustainability, conscious construction and preservation. “CPG sees itself as custodians of this country and the land it builds on, it is our remit to protect and enhance the landscapes and communities we find ourselves in. The responsibility lies with us; to do good where we must, whether this means, architecturally or in operational practice,” says CGO Gavin Ramsay. With plans in place for community upliftment, renewable energy and sustainable practices in construction and resort operation, CPG is primed to make its products future-proof. 

CEO Reza Magdon-Ismail remains bullish about Sri Lanka’s future. When it comes down to it, regardless of all the external noise and macro-economic conditions, Sri Lanka’s natural beauty remains. It was voted the number 1 tourism destination by Lonely Planet in 2019 and number 5 by Conde Nast in 2021. This beauty has existed in the past and will remain in the future. “We are very proud that despite multiple catastrophes for tourism in Sri Lanka in the last 4 years, CPG, a leisure focused property developer, has thrived. Now imagine a scenario where Sri Lanka has five to ten years of fresh air and can meet its potential as a world class tourism destination.

“I’m very confident that once we generate a strong yield for our Sky Villa and villa owners, and investors see the quality of our products, we will be entrenched as the leader in Sri Lanka’s tourism-based real-estate offerings. The Sri Lankan expatriate community is huge, and we have just begun to scratch the surface of their investment potential.” 

CPG has two new projects in the pipeline for 2022. Visit www.cpg.lk or call +94 772292202 to be on their list of private buyers who will be approached prior to making the product public.