By Bandula Sirimanna
Indian real estate company Krrish Group will break ground soon for its long-delayed US$650 million mixed development project at Transworks House in Fort as the company has received the approval of the Urban Development Authority (UDA) last week to go ahead, local Krrish officials revealed.
The local company Krrish Transworks Colombo (Pvt) Ltd, a subsidiary of Indian real estate company Krrish Group, will launch construction of the proposed first and second phases of the project within the next two months, they said.
The company has paid Rs.4.4 billion out of the full lease payment of around Rs.5 billion to take over the 4.3 acre land on 99 year lease.
A sum of Rs.589.7 million with accumulated interest at 12 per cent will have to be paid by Krrish to complete the land deal but there was no clause in the 99 year lease agreement that prevents construction work till the payment of full amount, a top official of the UDA said adding that the local company officials have given an assurance to settle this money.
An international contractor will undertake the building construction and the company will reach an agreement with the foreign developer soon for the mixed development project which would include apartments, commercial space and a hotel, officials disclosed.
A 55-storeyed high-rise tower to house an internationally managed hotel chain with 220 rooms and up market apartments will be built adjoining the Transwork House. Krrish Square will have the base of 10 floor podium for car parking, high end retail stores, shopping complexes etc.
The Krrish project was marred with controversy with the allegation of secret payoffs to keep the window open for payment and for various approvals. Names of several powerful members of the former regime figured in the allegation of secret payoffs by the Krrish Group.
The Krrish group however expressed concern over the bad publicity it had been receiving over the deal including the controversy of a payment delay which it stated was unfounded.
Indian real estate company Krrish Group will break ground soon for its long-delayed US$650 million mixed development project at Transworks House in Fort as the company has received the approval of the Urban Development Authority (UDA) last week to go ahead, local Krrish officials revealed.
The local company Krrish Transworks Colombo (Pvt) Ltd, a subsidiary of Indian real estate company Krrish Group, will launch construction of the proposed first and second phases of the project within the next two months, they said.
The company has paid Rs.4.4 billion out of the full lease payment of around Rs.5 billion to take over the 4.3 acre land on 99 year lease.
A sum of Rs.589.7 million with accumulated interest at 12 per cent will have to be paid by Krrish to complete the land deal but there was no clause in the 99 year lease agreement that prevents construction work till the payment of full amount, a top official of the UDA said adding that the local company officials have given an assurance to settle this money.
An international contractor will undertake the building construction and the company will reach an agreement with the foreign developer soon for the mixed development project which would include apartments, commercial space and a hotel, officials disclosed.
A 55-storeyed high-rise tower to house an internationally managed hotel chain with 220 rooms and up market apartments will be built adjoining the Transwork House. Krrish Square will have the base of 10 floor podium for car parking, high end retail stores, shopping complexes etc.
The Krrish project was marred with controversy with the allegation of secret payoffs to keep the window open for payment and for various approvals. Names of several powerful members of the former regime figured in the allegation of secret payoffs by the Krrish Group.
The Krrish group however expressed concern over the bad publicity it had been receiving over the deal including the controversy of a payment delay which it stated was unfounded.
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