The company which is planning a property development project on a prime 1.25 acre site at Kotahena in the North of Colombo says that economic developments will boost the purchasing power of both local home buyers and Lankans living overseas keen on potential capital appreciation of well located and high end property developments.
This outlook has prompted CT Properties Limited to pursue a joint venture agreement with a Singapore based Edmonton Pte Ltd (a subsidiary of Keppel Land) to develop high-end condominiums in a site where the original Sellamahal Cinema belonging to Ceylon Theatres was located.
A similar development in land on the old Empire Cinema was located houses the Empire luxury apartment tower and the Majestic City shopping mall and entertainment complex is located on the site of the previous Majestic Cinema that belonged to Ceylon Theatres.
CT Properties will hold 40% of the joint venture company with the Singapore partner owning the majority 60%. The total development cost of the project has been estimated at approximately Singapore dollars 70 million.
The CT Holdings report said that Keppel Land’s participation in the proposed development is subject to satisfaction of conditions precedent including but not limited to the joint venture company obtaining plan and regulatory approvals from the relevant authorities.
In an industrial overview of the real estate and property development scene, CT Holdings said that the sector stands to enjoy substantial growth from the prevailing environment of peace and stability.
There is a rising demand for increased leisure and entertainment activities outside city hotels and increased economic activity was called for higher quality office space in the city.
CT Holdings sees the inflow of expatriates as well as lifestyle changes among middle income groups auguring well for residential development.
"The state led transformation of the Colombo city to a picturesque yet commercial hub for the region also promises further growth potential," the report said.