Alliance Finance to sell Rajagiriya property to Iconic Development for Rs. 524.5mn

By Nishel Fernando 
Leading real-estate developer, Iconic Development, part of India’s Apurva Natvar Parikh group, has entered into a Sale and Purchase Agreement (SPA) to purchase 134.64 perch property in Obesekarapura, Rajagiriya owned by Alliance Finance Co. PLC  for a Rs.524.55 million.

In a stock filing, Alliance Finance revealed that Iconic Development yesterday made a payment of Rs.52.4 million in this regard and the balance consideration is to be paid within 60 days from yesterday.

“The completion of the transaction will be subject to fulfillment of the terms and conditions in the Sale and Purchase Agreement,” Alliance Finance noted.

The favourable impact stemming from the deal to Alliance Finance’s current year’s unaudited income statement is estimated at Rs.102.6 million.

Before the COVID-19 pandemic, Apurva Natvar Parikh Group Managing Director Rohan Parikh announced plans to invest US$ 50 million in two low-rise residential projects in Rajagiriya and a high-rise residential project in Colombo.

According to him, Iconic Development was eyeing on two low-rise developments of eight to 10 floors to develop 30 to 40 units by investing US$ 20 million, which would be sold between Rs.20-40 million per unit.

The investments were expected to come from a Singapore-based investment vehicle ANP, part of the Apurva Natvar Parikh group.

The family-owned Apurva Natvar Parikh group was founded in 1947 and has interests in transportation and lifting, shipping, logistics and warehousing, real estate, hospitality, IT outsourcing and education across India, Oman, Singapore and Sri Lanka.

Iconic Development earlier successfully developed Iconic 110 Parliament Road with an investment of US$ 30 million, followed by Iconic Galaxy apartment complex with US$ 50 million investment, which is expected to be completed end of this year.