Saturday 31 January 2015

JKH expresses confidence on viability of Water Front project

Will “engage” with govt. on proposed restrictions

John Keells Holdings said in a stock exchange filing on Friday that they will "engage with the government" with regard to the Prime Minister’s announcement in parliament on Thursday that the agreements entered into with Water Front Properties (Pvt) Ltd. under the Strategic Development Projects Act will be amended to restrict the ability to rent space for gaming activities.

"Whilst the proposed amendment will constrain the ability to command premium rentals on this component of the project, the multi-faceted nature of this development gives your Board the confidence that the project will still be viable given its diverse portfolio of revenue streams and iconic designs which, we believe, will transform the landscape of Colombo," the filing said.

"As such, the project will continue as planned. The overall brand architecture for ‘Water Front Project’ has now been finalized with the project being branded as ‘Cinnamon Life’ and demand for both the residential and commercial spaces remain encouraging."

JKH on Friday reported healthy profit growth in the third quarter of the current financial year and the first nine months of fiscal 2014/15.

Third quarter group profits before tax (PBT) at Rs. 5.2 bln. was up 27% From the Rs. 4.27 bln. posted a year earlier.

The PBT for the first nine months of the current financial year at Rs. 12.18 bln. was up 33% over the Rs. 9.11 bln recorded in the comparative period in the previous financial year.
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