#Update* Sunway to make foray into Sri Lanka with RM250m project

KUALA LUMPUR: Sunway Holdings Bhd is making its foray into Sri Lanka to undertake a mixed development project with a gross development value of RM250 million.

Sunway said on Friday, Sept 24 it was teaming up with Dasa Tourist Complex Pte Ltd to build residential and commercial units in Colombo.

Its unit, SunwayMas Sdn Bhd will have a 65% stake in the JV company and Dasa Tourist 35%.

The mixed development will comprise of at least 318,000 sq ft of net saleable areas of residential units and 60,000 sq ft of net saleable areas of commercial units in Colombo city.

Sunway managing director Yau Kok Seng said the project would consist of a 34-storey building comprising 70 commercial units and 180 residential units on prime freehold land in the premium mixed-use zone of Bambalapitiya in District Colombo 4.

He said the project was expected to be launched in the second quarter of next year and to be completed by mid-2014. He added it would contribute “very positively” to the bottom line of the group.

“We are targeting Sri Lankans in the high-medium income and the high-end income groups. Even foreigners and those who are part of the Sri Lankan diaspora are expected to be interested,” he told a press conference.

On the pricing, Yau said the group was anticipated to launch the upmarket property with the residential units priced at about US$200 (RM618) per sq ft while that of commercial units at US$350 per sq ft.

"We are anticipating more than 20% net margin from this project," he said adding that the project enjoyed a five-year "tax holiday" from the Sri Lankan government from the time of completion.

Yau said the project would increase Sunway's landbank to more than 430 acres with potential GDV of RM2.6 billion which would be developed over the next three years.

Dasa Group chairman and founder S D Gunadasa said the JV marked an important milestone for the company's first venture in mixed development in Sri Lanka, stressing that it looked forward to more collaborations with Sunway Holdings in its future expansions.

"While the Sri Lankan property market gears itself for robust growth in the next five years, international collaborations with premier property players such as Sunway Holdings will contribute immensely to raise the standards in the industry as well as to create new benchmarks," he added.
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