Browns Investments secures leasehold rights to develop marina and hotel in Port City

• Secures lease rights for two additional plots for US$ 98mn in addition to Phase I of CIFC
• Two new secured land plots most likely to be developed partnering with foreign parties

Browns Investment PLC, the strategic investment arm of LOLC Group has secured leasehold rights of additional two prime land blocks in Colombo Port City for US$98 million to undertake the development of the marina and a hotel project adjoining the earlier secured Colombo International Finance Centre (CIFC) project. 

The two newly secured land plots are most likely to be developed in partnership with foreign parties.  Colombo Marina Development Pvt. Ltd and Marina Hotel Holdings Pvt. Ltd, subsidiaries of Browns Investments last Thursday (2nd) entered into lease contracts with the Colombo Port City Commission to secure 99-year leaseholder rights of 30,776 square metres (7.6 acres)  and 13,006 square metres (3.2 acres) land plots to undertake Colombo Marina Development and Port City Marina Hotel Development projects, according to a stock filing with the Colombo Stock Exchange (CSE) last Friday.

“We are now in the process of finalising the investment figures for these two projects. After securing the necessary approvals for the buildings and other structures, we will commence construction work. We will most probably partner with a foreign party to develop these two projects which consist of a hotel and a marina,” a top LOLC official told Mirror Business. 

In December last year, Browns Investments in a joint venture of immediate parent of Port City project company, China Harbour Engineering Company Limited (CHEC), entered into an agreement to jointly invest and manage the Phase 1 of Colombo International Finance Centre (CIFC) mixed development project through a SPV. The investment of the project was estimated at US$ 450 million with a buildable land area spanning 3.06 hectares. According to Friday’s stock filing, Browns Investments had settled US$ 42 million for 99-year leasehold rights of the project and the balance US$ 62 million is scheduled to be settled within this month.

Further, Browns Investments has settled the total amount of US$ 55 million for Colombo Marina land plot and US$ 17 million out of the full amount of US$ 43 million for Port City Marina Hotel Development land plot. The balance amount is scheduled to be paid in 2022 and 2023.

The government has granted income tax holidays for up to 25 years based on investment specifics and waiver of border tariffs and sales taxes on construction material leading to cost savings of 30-40 percent for CPC projects.