Access to build SL’s largest warehousing complex with US$ 250mn investment

24 January 2022 10:10 am Views - 907

• Leading multinational already onboard to lease premises for export venture 
• Access denies to reveal the name due to signed NDA; lease agreement with two parties to be inked shortly
• Multinational expected to invest US$ 50-75 mn in internal infrastructure facilities
• Entire project expected to be completed in one and half years

By Nishel Fernando 
Access Engineering Group plans to build Sri Lanka’s largest warehousing complex in Ekala with an overall estimated investment of US$250 million, which will be leased out to a leading multinational company.

Last week, a unit of Access Engineering Group, Access Logistics Park Ekala (Pvt.) Limited, won a bid to develop a 36-acre logistics and business park mixed development project on ‘build-operate-transfer (BOT)’ basis in Ekala, Ja-Ela, from the Urban Development Authority (UDA) following a competitive bidding process.

Speaking to Mirror Business, Access Engineering Group Executive Vice Chairman Christopher Joshua noted that Access Group secured the said land on a 49-year lease from the UDA for Rs.2.4 billion, which is over three times the value  (Rs.600 million) estimated by the Government Chief Valuer.

The proposed 700,000 square feet warehousing complex is set to become the country’s largest warehousing complex— three times the size of the current largest such complex in the country. 

The proposed logistic park would also be inclusive of bonded warehousing facilities, subject to approvals from the Sri Lanka Customs and Ministry of Finance.
Joshua revealed that a leading multinational company has already come onboard to lease the facility from Access Group. 

The multinational is expected to invest US$ 50-75 million in internal infrastructure facilities and the overall estimated investment in the project is estimated at around US$ 250 million.
Due to the non-disclosure agreement (NDA) signed between Access and the said multinational, Joshua noted that he’s not in position to reveal the name of the multinational to the public as yet.

Access Group is expected to enter into a lease agreement with the said multinational firm shortly.
According to Joshua, the multinational company would utilise the facility for 100 percent export-related activities generating significant export revenue to the country upon the completion of the project scheduled to be completed in one and half years.

The project, which is located on a portion of the former Sri Lanka Broadcasting Corporation (SLBC) land in Ekala, is expected to generate 2000 to 3000 employment opportunities, according to the UDA.

In addition, the property values in the area are also expected to further appreciate with the development and UDA is likely to develop the remaining land portions as residential housing projects.