Two subsidiaries of John Keells Holdings last week made Stock Exchange filings announcing that "several of the requisite approvals for the (Waterfront Development) Project had been obtained and that a decision has been taken to commence work on the project."
John Keells PLC (as opposed to JKH) and Ceylon Cold Stores PLC are contributing large extents of prime city real estate to the project in return for equity in Waterfront Properties (Pvt) Limited (WPL) undertaking the USD 650 million integrated resort which will be the country’s largest private sector investment.
Ceylon Cold Stores will receive Rs.5.393 billion worth of equity of WPL as consideration for the freehold and leasehold rights of the land it occupied at Justice Akbar Mawatha and Glennie Street, Colombo 2 while John Keells PLC will receive Rs.1.916 billion worth of equity in WPL for its freehold land at Glennie Street, Colombo 2.
John Keells PLC (JKL) is the original produce and share broking firm out of which the JKH conglomerate grew. JKL owned the group’s Glennie Street headquarters that has now been demolished.
JKH will be the main shareholder of WPL followed by Cold Stores and JKL. The construction is due to be completed four years from start-up.
A senior JKH official explained that the gazettes enabling the various tax and other concessions for this strategic development project has now been published, the demolition work of existing building on the property has been completed and they were ready to staert the construction.
The casinos that will be part of the project were not referred to in Wednesday’s Stock Exchange filings and this remains a gray area. The official explained that the gazettes related to the building and the importing of the necessary construction equipment etc.
"The demolition work has already been completed and construction will now begin," he said. Asked whether the contract has been awarded, he said that they were in the process of making the award. Hyundai will be the contractor.
The construction work will cost approximately USD 520 million while the entire project is estimated to cost USD 650 million, he said.
JKH continues to be the hottest stock quoted on the CSE with foreign selling seen recently. However, the balance between foreign and local shareholding in the company has tilted only about a marginal one percent, analysts said.
www.island.lk
John Keells PLC (as opposed to JKH) and Ceylon Cold Stores PLC are contributing large extents of prime city real estate to the project in return for equity in Waterfront Properties (Pvt) Limited (WPL) undertaking the USD 650 million integrated resort which will be the country’s largest private sector investment.
Ceylon Cold Stores will receive Rs.5.393 billion worth of equity of WPL as consideration for the freehold and leasehold rights of the land it occupied at Justice Akbar Mawatha and Glennie Street, Colombo 2 while John Keells PLC will receive Rs.1.916 billion worth of equity in WPL for its freehold land at Glennie Street, Colombo 2.
John Keells PLC (JKL) is the original produce and share broking firm out of which the JKH conglomerate grew. JKL owned the group’s Glennie Street headquarters that has now been demolished.
JKH will be the main shareholder of WPL followed by Cold Stores and JKL. The construction is due to be completed four years from start-up.
A senior JKH official explained that the gazettes enabling the various tax and other concessions for this strategic development project has now been published, the demolition work of existing building on the property has been completed and they were ready to staert the construction.
The casinos that will be part of the project were not referred to in Wednesday’s Stock Exchange filings and this remains a gray area. The official explained that the gazettes related to the building and the importing of the necessary construction equipment etc.
"The demolition work has already been completed and construction will now begin," he said. Asked whether the contract has been awarded, he said that they were in the process of making the award. Hyundai will be the contractor.
The construction work will cost approximately USD 520 million while the entire project is estimated to cost USD 650 million, he said.
JKH continues to be the hottest stock quoted on the CSE with foreign selling seen recently. However, the balance between foreign and local shareholding in the company has tilted only about a marginal one percent, analysts said.
www.island.lk
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