Kerner Haus secures third management deal, lifts annual fees to Rs. 48.1 m

Tuesday, 13 January 2026 03:57 - - {{hitsCtrl.values.hits}}

Kerner Haus Global Solutions PLC yesterday said it has entered into its third property management agreement, with the contract expected to generate an estimated annual management fee of Rs. 22 million from a commercial property in Slave Island.

The company said the Board has approved the execution of the agreement with Kerner Haus 2203 Ltd., effective 1 February 2026.

The agreement covers the management of a commercial property located at multiple assessment numbers along Kew Road and Slave Island Colombo 02. With the addition of this property, Kerner Haus will manage a combined capacity of approximately 1,440 office seats across three premium locations, with total estimated annual management fees rising to Rs. 48.1 million.

The Slave Island property adds capacity for around 440 office seats and forms part of the company’s Phase 1 asset-light management strategy. The company said the approach is aimed at building operational capability and recurring management fee income, while positioning for future strategic acquisitions.

Kerner Haus said the property benefits from its location within Colombo’s financial district, proximity to major banks and corporate offices, and strong transport connectivity. The facility is positioned to serve BPO, KPO, and international small and medium-sized enterprises seeking centrally located office space.

Under the agreement, the property will be operated as a fully serviced office facility under the Kerner Haus brand, providing move-in-ready workspaces with integrated services including utilities, internet, maintenance, security, and operational support, enabling occupiers to commence operations without upfront capital expenditure.

Kerner Haus closed yesterday down Rs. 26 to Rs. 648.25 a share. The company reported a negative Rs.72 net asset value per share as at end September 2025. Ekta Global Ltd. was the top shareholder of the company with a 63.62% stake.

Last November, Kerner Haus begun executing its asset-light growth strategy with the signing of a Property Management Agreement with VKM Services Ltd., for a prime commercial property at No. 46/10, Nawam Mawatha, Colombo 2.

That deal was expected to generate Rs. 12.6 million in annual management fees from existing leases. Kerner Haus said the agreement marks the first phase of its plan to build a property management platform before moving into selective asset acquisitions. The strategy is intended to create recurring fee income while demonstrating operational capability in managing fully serviced office environments.

The Nawam Mawatha property, with capacity for about 300 office seats, is situated in Colombo’s financial district among major banks and corporates. The location offers strong transport connectivity and access to business services, positioning it for BPO, KPO, and international small and medium enterprise (SME) tenants seeking central business district space.