August 03, 2012 (LBO) – Sri Lanka’s Shaw Wallace and Hedges PLC has entered into an agreement to sell a prime block of land in Colombo for 1.8 billion rupees to a foreign hotel developer.
The block of 264.65 perches in Colombo’s upmarket Colpetty area was bought by Avic International Hotels Lanka Limited.
“The purpose of the sale, is to finance the ongoing 30-storied development project in the adjoining land, where the piling and sub-structure work has been completed,” Shaw Wallace said in a stock exchange filing on Friday.
The company said the buyer planned to develop the land to build a “mega hotel.”
Shaw Wallace plans to convene an extraordinary general meeting shortly to get shareholder approval for the sale.