11 December 2018 10:37 am Views - 1936
By Nishel Fernando
Sri Lanka’s Sanken group plans to build a 185-room luxury hotel with an investment of Rs.6 billion in Galle next year, which will be managed by a top Sri Lankan hotel chain.
According to company sources, Sanken has already purchased a 1.5-acre land near Rumassala area in Galle to construct the hotel and it has also secured approvals from the Urban Development Authority (UDA) and few other state agencies.
However, a company official on the grounds of anonymity said that the commencement of construction may take another six to 12 months as several other approvals from state agencies, such as approvals from the Sri Lanka Tourism Development Authority, Central Environmental Authority, etc. are still pending. The Sanken group has a 51 percent equity share of the project while other investors, including a Singaporean investor, hold the rest of the equity in the project.
The group is also expected to enter into a management agreement shortly with a leading hotel chain in Sri Lanka.
Meanwhile, the Sanken group in partnership with Grand Monarch commenced the construction work of the Rs.10 billion mixed development project in Sri Jayewardenepura – comprising 320 middle-income apartments and a 2,000-seat convention centre.
The Sanken group and its joint venture partner secured the land from the UDA on a 99-year lease earlier this year. The residential tower will be adjoined to the convention centre, which would have other amenities, including a large food court.
The company official said that the construction of the convention centre has already begun and piling has been completed. The Sanken group plans to commence construction of the residential tower next year, after securing investments from a foreign partner.
The Sanken group and foreign investors plan to invest Rs.8 billion in the residential tower while Grand Monarch is investing around Rs.2 billion in the convention centre.
The Sanken group is also currently building its landmark luxury 400-plus apartment twin-tower project Capitol Twin Peak, at No: 24, Staple Street, Colombo 2, with a US $ 180 million investment.
With 34 levels being completed, the project is inching closer to completion by end-2020 with over 50 percent apartment units being already sold.
Sanken, which has its roots in the Fortune 500 Japanese Mitsui Construction Company, is a leading player in Sri Lanka’s construction industry.