Colombo, a modern city in the making | July 2013 |

Colombo, a modern city in the making

Colombo city calls for the need of development towards an urbanized metropolis in transforming to a regional hub. Steps have been taken by means of improving the quality of the road network and beautification of the city to make the metropolis one of the greenest and cleanest cities in Asia. To cater to the required capacity increase in hotels, apartments, office and retail space, many projects including mixed developments have been proposed. However due to back and forth movements in certain policies and other delays, only few out of the announced projects are currently underway while the others are expected in the medium term. Therefore due to the disparity between the currently needed capacity and actually completed, a deficit in supply exists. Thus we believe that there would not be a glut due these projects being automatically phased out. The government through the state owned Urban Development Authority is involved in the city development whilst many private companies have proposed projects. However out of the listed companies, few such as John Keells Holdings (JKH : LKR260.10), Colombo Land and Development (CLND : LKR43.70), Overseas Realty (OSEA : LKR18.50) and Access Engineering (AEL : LKR20.30) have grasped such opportunities. In the five star city hotel segment a shortfall of c.1,500 hotel rooms (by 2016) would be seen in meeting the expected tourist arrivals trend where the city is currently equipped with 2,000 hotel rooms. A deficit would be evident till 2016/17 as only two five star hotels out of the proposed projects are off ground currently (of capacity 700 rooms). The apartment projects in and around Colombo adds to +100 whilst the demand for apartments mainly come from Sri Lankan expats on motive of renting the purchased units. Hence the gradual increase in apartment capacity would meet the slowly growing demand for apartments in line with the maturing city. Due to limited prominent office space available in the capital and few office spaces been proposed, ample opportunity in this segment exists. Proposed retail space and other mixed developments would see the demand changing mainly with the increasing number of tourists from the Indian sub-continent whilst the gaming industry would go hand in hand to create a new demand wave. The country having an annual tourist count exceeding 1 mn would see an additional demand with the growth in the casino industry which is yet to see a global player entering the fray. However it would be a matter of time and we believe that this would create further upside in demand for hotels, apartments and retail space.

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TKS RESEARCH | LEVEL 19, WORLD TRADE CENTER, ECHELON SQUARE, COLOMBO 1 01 TEL (+94) 117 857 799 | E-MAIL [email protected]

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CONTENTS Pg. No. OVERVIEW MIXED DEVELOPMENTS Havelock City Krrish Square AVIC Mixed Development Crown Mixed Development Project Integrated Resort by John Keells Holdings Hyatt Regency Colombo EoN Resorts Liberty Square & Tower Platinum One APARTMENTS Fairway Sky Gardens Iconic 110 Parliament Road Altair Luxury Residencies ON320 Apartments Destiny Apartments, Malls & Residency HOTELS MOVENPICK Colombo Shangri-La Colombo Sheraton Colombo Marino Sands Hotel ITC Hotel Sancity Business Hotel MALLS Colombo City Centre OFFICE SPACES Access Realities 2 Tower 35 33 27 28 29 30 31 32 20 21 23 25 27 6 8 9 10 12 14 16 18 19 3

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Colombo, the capital city established by the British colonial rule expanded with the growth in the overall economy, although the expansion was curtailed due to the three decade civil war. Hence as consequences of the war the city lacks in infrastructure while not being urbanized in addition to being behind many of its regional peers thus giving ample space for the metropolis to develop. Therefore the need for the airport and Colombo port to be expanded along with other infrastructure to be improved arises to accommodate the increasing tourists and business travellers, returning expats, and significant estimated growth in FDIs. Thus urbanization and modern development is much needed for the fast becoming regional hub. Therefore we recognize areas such as road network coupled with free flow of traffic within the city, hotels and residential accommodation, office space, recreational, shopping and entertainment to be developed and fit to the new phase of changing Colombo. Thus a cleaner and a well maintained topographic city with an efficient transport network is essential. In addressing these grey areas in the Colombo city many steps have been taken by means of improving traffic controlling, the quality of the road network, various beautification projects to create a greener environmental and adding up of recreational spaces. Thus in a state of transformation in the post war years the metropolis has emerged as one of Asias greenest and cleanest cities and is making a strong comeback to reach standards of Asias garden city, Singapore. Moreover shopping and recreational spaces have been developed to meet the retail demand where the state has taken steps through the state owned Urban Development Authority (UDA). Colonial buildings and other large buildings in prime locations in the city have been refurbished and rented out to earn income whilst catering to the needed demand by the UDA. Meanwhile private entities have also come to the forefront by announcing various developments, although very few listed companies such as John Keells Holdings (JKH : LKR260.10), Colombo Land and Development (CLND : LKR43.70), Access Engineering (AEL, LKR20.30) and Overseas Realty (OSEA : LKR18.50) have launched projects. Despite the announcements on many of these projects very few in fact have broken ground. In this report we have identified 9 large scale mixed development projects, 5 standalone apartment projects and 6 three to five star hotel projects which have been announced in and around the city of Colombo. The developments we have identified together would add c.3,000 apartment units and more than 3,000 three to five star hotel rooms in the coming 4-5 years. However we do not expect a glut in hotels, apartments and retail space as the development would be automatically phased out. Mixed Development projects In the mixed development arena, Havelock City has already completed and sold 2 apartments towers (226 units) and another 2 apartment towers (218 units) are under construction. Meanwhile Hyatt Regency and Platinum One have partly completed structures for majority of the level of storeys. However apart from these developments all other projects are yet to break ground. Therefore we believe that the Colombo metropolis would function with a marginal capacity increase during the next 2-3 years where we would not see a real growth until the next 4-5 years. Market for Hotels Currently Colombo is only equipped with c.2,000 five star rooms which are in short supply. With the completion of the Movenpick and Hyatt we would see another c.700 rooms being added during the next 3-4 years. We believe there would be demand for city five star rooms with the expected growth in business, crew and MICE travelers. Further the infrastructure development in the country and being strategically located to expanding economies and large source markets for tourism such as India, China, and Singapore, the country offers good potential for growth.
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Market for Apartment units Apart from these city hotels coming up, we are also seeing new luxury and semi luxury in addition to the standard type of apartments being developed in and around Colombo. At the moment we have +100 apartment units in Colombo and the suburbs and most of them are fully sold out or 80% sold. While we understand that the highest demand is triggered for semi luxury apartments and when further analyzed it was evident that most of those apartment units are bought by Sri Lankan expats on the motive of renting out to another party where very few actually live there. It is also seen that some degree of demand for such apartment units come from families of businessmen living in rural areas aiming for convenience for schools, higher education and employment associated with the locations of apartments. In line with the expected growth in this segment in the medium term we also expect rental yields to pick up, despite being at low levels of c.67% currently. Unlike in most emerging economies, the urban population in Sri Lanka has not increased in accordance with the increase in population over the past five decades and currently, only c.15% of the population live in cities. Despite issues regarding the classification of urban and rural areas, it is estimated that Sri Lanka has a higher percentage of its population living in rural areas. Another factor to also consider is the limited number of expat Sri Lankans living in the west who are in the condominium market and since the end of the conflict, this segment has been at the frontline in picking up luxury apartments. The peak levels of expat interest in Sri Lankan real estate market maybe fast approaching or even possibly behind us in which case the rate of demand growth will slow down. We believe Colombo is not yet ready to take up this many apartment units and if all these developments come at once, Colombo would face a glut of apartment units and it would be difficult to market these luxury condominiums to the locals at present given its pricing. Therefore in a way these projects getting delayed is a good thing and a gradual addition of capacity is needed when the city matures. Therefore we believe a gradual addition of apartment units are needed to match the change in the Sri Lankan real estate market with the expected life style changes and the returning of the Sri Lankan expats who has reached their retirement age. Market for Office Space After the conflict ended in 2009 the demand for office space in Colombo increased drastically. However at that time only sizable office spaces available in Colombo were, the World Trade Centre (750,000 sqft in total), HNB Towers and Access Towers (200,000 sqft in total). Subsequent to the demand we saw the rents also doubling in Colombo commercial complexes. Thereby we believe there is significant opportunity for office space developers and at the moment we have only seen very few new commercial buildings planned. Thus office space would continue to be in demand in line with the transformation towards a hub status of Colombo together with needs of increasing BPO operations in the country.

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Market for Retailing, Gaming and Entertainment Sri Lankas retailing industry is mainly driven by supermarkets, clothing and white goods. In the past we have not seen a great demand for retailing space in Colombo and most the retailing outlets were confined to smaller shops (apart from some clothing outlets). However post war era has seen a significant expansion in the retail segment (mainly white goods and branded apparel) with the entry of leading international brands thus demand for sizable retail space has also increased. Most of the new mixed development projects announced has a significant retailing space (on ave. 50,000 sqft) and we believe these space would be taken up by either local or foreign retailers. Moreover it is unlikely that one retailer would take up this entire space but more likely that this space would be divided among few retail operators. Sri Lankas gaming and entertainment industry looks optimistic with interest being shown from both local and foreign parties to enter the Industry. Sri Lankas casino market is a fragmented industry with six licenced casinos operating in Sri Lanka, namely Bellegio, Ballys, MGM, Stardust, Marina Colombo and Ritz. In the six years leading up to 2011 casinos contributed LKR1.7 bn in tax revenue. The targeted market for gaming clientele would be wealthy Indian and Chinese Players. As seen through the enhancement of the gaming industry in Maccau and Singapore (both regions operating a multi-billion dollar industry dwarfing the iconic Las Vegas) it invariably leads to more tourist arrivals where Sri Lanka could expect more tourist arrivals from India, China and the Middle Eastern region. Thus the huge growth potential in the industry particularly due to the current scale of the casino industry in Sri Lanka citing the Indian traffic as a lucrative target market is further evident with the interest shown by industry tycoons such as Packer (as indicated by the media). This could lead to the expansion of tourist arrivals from other regions as well which would assist in the demand for hotels, apartments and retail space.

Source : maps.google.lk / TKS Research

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Havelock City

MIXED DEVELOPMENTS

Havelock City is a mixed development project consisting of 1,080 luxury condominiums, large shopping mall and two office towers. The development is spread across 18 acres of land bank just 6.0 km away from central Colombo. Under phase I two residential apartments consisting of 226 units were completed and currently 100% occupied. Phase II is now in progress which would construct 2 more towers consisting of 218 apartment units and expected to be completed in 2014.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Architectural designer Other designers Details of the Project Details Havelock City Overseas Reality Ceylon and Bank of Ceylon Managed by Mireka Capital Land Pvt Ltd USD350 mn Havelock Road, Colombo 6 18 Acres East China Architecture and Design Institute The Design Group Five International Pvt Ltd 10 Towers 36 meter Beam Bridge (connecting the residential project and Skelton Road) 1,080 Luxury Condominiums, A Shopping Mall, 2 Office Towers 2 bed room, 3 bed room, penthouses LKR30 mn - LKR125 mn 1,292 - 1,492 Sqft Overseas Realty (OSEA : LKR18.50) 60% and Bank of Ceylon 40% 10 years http://www.havelockcity.lk/, http://www.sundaytimes.lk/101212/BusinessTimes/bt22.html

Apartment Range Selling Price Average Size Project Holding Tax holiday Source

Source : havelockcity.lk / TKS Research

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Source : maps.google.lk / TKS Research

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Krrish Square

MIXED DEVELOPMENTS

Krrish Square is expected as a multi-purpose residential and commercial complex which would be built on a 4.3 acre land. It will consist of 3 towers with a floor count of 95, 90 and 65 and the project once completed is currently ranked as th the 10 largest of its kind in the world. Development area would be 5.0 mn Sqft whilst all towers would be built on 10 floor podiums with 3 being residential and the other housing a 7 star hotel and a high end retail complex.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Land ownership Land Transfer Price Architectural designer Other designers Details Krrish Square Krrish Transworks Colombo Pvt Ltd USD650 mn York Street Colombo 1 (old Transworks Square) 4 - 4.5 Acres 99 year lease from UDA LKR5 bn (USD39.6 mn) Kukreja Associates Wilson Associates (New York) Dandi Living Ltd. (London) Edouard Francois (France) 4 Towers built on 10 floor podiums Podium: 2 floors for malls, 2 floors for offices, and 8 floors (two basement) for parking. TW 1 - Podium + 80 floors, TW 2 & 3 - Podium + 55 floors TW 4 - Podium + 80 floors + 60 floors (separate adjacent tower) 7 Star Hotel High end Retail Complex Sky lounge on the top floor. Separate entry and exit for residents, offices, and malls Roof top swimming pool with sea view. Multiplexes with six screen Sky lounge on the top floor. Viewing Deck on the top floor. Helipad LKR31,400 per Sqft on apartments 2,900 4,000 Sqft per apartment The Krrish Group, India 10 year tax holiday and 6% thereafter for 15 years http://www.krrishcolombo.com/

Details of the Project

Selling Price Average Size Project Holding Tax holiday Source

Source : TKS Research/ 08 July 2013

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Colombo, A modern city in the making | July 2013 |

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AVIC Mixed Development

MIXED DEVELOPMENTS

This being the first expected to be completed from the projects in the pipeline, the development would consist of a hotel, apartment complex and retail space on a land plot of nearly 2 acres in Colombo 3. The project would be done by Avic International Hotels Lanka Limited, the Sri Lankan unit of Chinese firm CATIC (China National Aero-Technology Import & Export Corporation).

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Land ownership Land Transfer Price Details of the Project Details Avic Mixed Development Avic International Hotels Lanka Limited USD300 mn Land between Galle Road and Duplication Road in Colombo 3 2 Acres Freehold rights by developer Rs. 1.85 bn (USD22.0 mn) 50 storied Luxury Hotel Residential apartments Retail space Project Holding Tax holiday Project duration Source Avic International Hotels Lanka Limited 12 year tax holiday 2 years http://www.sundaytimes.lk/130630/business-times/chinese-firm-avic-getsspecial-status-for-a-mixed-development-colombo-project-50142.html Source : TKS Research/ 08 July 2013

Source : maps.google.lk / TKS Research

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Colombo, A modern city in the making | July 2013 |

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Crown Mixed Dev. Project

MIXED DEVELOPMENTS

The Australian based Crown group will invest USD350 mn on a mixed development project along with a Sri Lankan investor. Government permission was granted for the project under the Strategic Development Act purely for a tourism project.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Land Transfer Price Details of Project Details Crown Complex Lake Leisure Holdings Pvt Ltd USD 350 - 400 mn Bordering D.R. Wijewardena Mw and Sir Chittampalam Mw Colombo 10 2 - 2.5 Acres Rs. 2.9 bn (USD22.0 mn) on a 50 year lease 1.0 mn Sqft development area 400 Roomed Luxury Hotel 20,000 Sqft Conference Hall 6 Signature Restaurants Designer shopping area Banquet Hall 50,000 Sqft Casino USD 450- 500 Rank Entertainment Holdings Pvt Ltd (45%) Crown Limited (45%) Singaporean individual or Concern (10%) (Private Equity) 12 year tax holiday http://www.sundaytimes.lk/130428/business-times/36-storey-crown-colombo-casinofrom-packer-conglomerate-41976.html http://www.lankabusinessonline.com/news/sri-lanka-crown-project-land-transferapproved/1698139062

Estimated Room Price Project Holding

Tax holiday Source

Source : TKS Research/ 08 July 2013

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Source : maps.google.lk / TKS Research

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Integrated Resort by JKH

MIXED DEVELOPMENTS

The leading diversified which is yet to officially announce details of its mega mixed development project at its current headquarters in the heart of Colombo. We assume that the valuable land bank would be developed as a mix of hotels, retail and office space, residential apartments, conference facilities and a possible casino. As announced by the Ministry of Investment Promotion, an investment of USD850 mn has been approved for the project although details are to be confirmed by the company.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Land ownership Details Integrated Resort by John Keells Holdings Waterfront Properties, a subsidiary of John Keells Holdings USD850 mn (as announced by the Ministry of Investment Promotion) JKH Headquarters, Glennie Street, Slave Island, Colombo 10 10 Acres John Keells Holdings (JKH:LKR249.90) and its subsidiaries, Ceylon Cold Stores (CCS:LKR165.00), John Keells PLC (JKL:LKR86.50), John Keells Properties and Waterfront Properties Land already owned by the above parties on freehold and partly on leasehold basis 4 mn Sqft of built up area 500 roomed 5 star hotel 400, 000 Sqft retail space 150,000 Sqft office space 350 units of apartments Possible Casino venture Conference Hall Assumed Selling Price Assumed timeline Source USD250 per Sqft for apartments 5 years www.cse.lk, http://www.adaderana.lk/news.php?nid=23344

Land Transfer Price Assumed Details of the Project

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Source : maps.google.lk / TKS Research

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Hyatt Regency Colombo

MIXED DEVELOPMENTS

Hyatt Regency is the first the Hyatt branded hotel which is to be established in Sri Lanka through Hyatt International South West Asia Ltd, an affiliate of the Chicago based Hyatt Hotels Corporation. Sinolanka Hotels & Spa Pvt Ltd who has acquired the 242 perch land for LKR4.2 bn (on a 99 year lease), which is located on Galle Road opposite Temple Trees has entered into a management agreement with Hyatt International South West Asia Ltd to construct a 5 star hotel complex with 475 rooms and 90 serviced apartments with amenities of a lobby lounge, an all-day dining, multi-cuisine restaurant, three specialty restaurants, a bar, eight spa treatment rooms, a fitness center, a swimming pool, and a Regency club lounge. Additionally the hotel once built would offer more than 17,000 Sqft (1,579 sq m.) of enclosed meeting space, including a 7,500 Sqft. (696 sq m.) ballroom. The project was approved by the cabinet as a strategic development project under the SDP act No 14 of 2008 which provides a series of concessions for a specific period of time as well as a tax holiday. Moreover there would be a ten year exemption on income tax and tax on dividends would be exempted. At the end of the period only 6% tax would be charged for the next 15 years which is half the prevailing tax rate for hotels. Expatriate workers would be exempted from PAYE Tax providing employees are restricted to 20. Likewise there will be no VAT for imports and local purchase of project related goods. This Project which began in 2008 as Ceylinco Celestial Residencies was halted after Ceylinco faced financial difficulties and was re-launched by Sinolanka in 2011.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Land ownership Land Transfer Price Contractor Details of the Project Details Hyatt Regency Sinolanka Hotels & Spa Pvt Ltd USD159 mn Galle Road Colombo 3 (opposite temple trees) 242 Perches Leasehold rights LKR4.2 bn (USD32 mn) Maga Engineering Pvt Ltd 5 Star Hotel complex of 43 Floors 475 Hotel Rooms 90 Serviced Apartments Meeting Space (17,500 Sq Ft) Ball Room ( 7,500 Sq Ft) Timeline Source Expected to be open in 2014 - 15 http://www.thesundayleader.lk/2012/10/27/hyatt-regency-colombo-to-openin-2014/

Source : TKS Research/ 08 July 2013

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Source : maps.google.lk / TKS Research

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EoN Resorts

MIXED DEVELOPMENTS

A mixed development of USD170 mn consisting of a luxury hotel, apartments and a convention centre would be developed in close proximity to Colombo Fort at Colombo 10 by the Maldivian based resort developer, Eon Resorts.

Fact Sheet
Fact Project Company Investment Location Land Size Details of the Project Details EoN Resorts USD170 mn Current Cey-Nor Restaurant Premises at D.R.Wijewardena Mw Colombo 10 80 Perches 300 roomed luxury hotel 100 luxury apartment units 150,000 Sqft retail space 2,000 Sqft food court Convention centre with 2,000 seating capacity Source http://www.lankabusinessonline.com/news/maldives-eon-resorts-to-buildus$170mn-hotel-in-sri-lanka/480032839, http://www.eonresorts.com/

Source : maps.google.lk / TKS Research

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Liberty Square & Tower, Pettah Development

MIXED DEVELOPMENTS

In line with UDAs Colombo Pettah development plan, Liberty Square along with the Liberty Tower woul d be built in 5 acres of Colombo Pettah land in a period of 2 years with construction commencing in September 2013. The entire project would be carried out by Colombo Development and Company (CLND:LKR45.00) as two phases where the 1st phase would consist of the Liberty Square and Towers whilst the second phase would be in 10 acres in the vicinity on an approximately 15 year timeline.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Land ownership Total project cost Details of the Project Features Details Liberty Square & Liberty Tower Colombo Land and Development Company Apprx.USD70 mn Peoples Park, Colombo Pettah (bordering Bodhiraja Mw, Olcott Mw, Saunders Place, Peoples Park) 5.0 Acres 99 year lease from UDA Apprx.USD70 mn 66 5-storey commercial units (of 500,000 Sqft) and 1 Tower of mixed development (20 storey 300,000 Sqft) under phase 1 Mixed development including Retail, office space, entertainment (cinema halls and food court) and apartments (targeted at working staff of Pettah traders) Parking space of 4 floors Sky lounge on the top floor. Front and rear entrance together with lifts and stairways for all commercial units Swimming pool Construction to begin in September 2013 and due to be completed in 2 years http://colomboland.com/

Timeline Source

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Source : maps.google.lk / TKS Research

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Platinum One

MIXED DEVELOPMENTS

Lead by an Indian venture, Platinum One mixed development has seen its super structure being completed and is expected to be completed in 2015. The 140,000 Sqft, 20 storey building is to be include high end shopping areas and residential units and would be an investment of c.USD20 mn.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Architectural designer Project completion year: Details of the Project Details Platinum One Platinum Realty Investments (Pvt) Ltd USD20 mn Galle Road, Colombo 3 (on top of Bagatalle Road) Apprx.80 perches Manitayakul Associates of Thailand and Design Advocacy of Sri Lanka 2015 20 floor state of the art building 66 residential apartments and 4 penthouses Automated valet car parking system with 216 parking slots Convention hall with 150 seating capacity Swimming pool, modern gym Commercial space of 60,000 Sqft http://www.sundaytimes.lk/130324/business-times/platinum-1-strategy-of-selling-luxuryapartments-after-completing-the-super-structure-sees-success-37699.html, http://www.platinum1.lk/aboutus.html

Sources:

Source : maps.google.lk / TKS Research

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Fairway Sky Gardens

APARTMENTS

Fairway Sky Gardens is the third luxury apartment building undertaken by the Fairway group with the previous projects Fairmount and Fairway Residencies winning ICTAD Awards for construction excellence offering a stunning view of surrounding wetlands, lakes, waterways, forests and the Colombo cityscape some apartments have their own sky garden while the rooftop flaunts Sri Lankas highest sky garden. With amenities of a swimming pool, gymnasium, sports complex, business centre, club house / diner, heli-pad etc sky gardens offers the ultimate in luxury apartment living.

Fact Sheet
Fact Venture Name Project Company Location Architectural designer Contractor Details of the Project Details Fairway Sky Gardens Fairway Sky Homes Pvt Ltd Down Buthgamuwa Road Kotte (near HSBC Call Centre) Milroy Perera Associates Pvt Ltd Maga Engineering Pvt Ltd 31 Floors 120 Units Swimming Pool, Gymnasium, Business Centre, Sports Complex Club House / Diner, Heli-Pad, Rooftop Sky Garden, Certain Apartments Have Their own Sky Gardens. Selling Price Average Size Source LKR25 - 50 mn 1,040 4,000 Sqft http://www.skygardens.lk/contact.php Source : TKS Research/ 08 July 2013

Source : maps.google.lk / TKS Research

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Iconic 110 Parliament Road

APARTMENTS

'110 Parliment Road' is a luxury apartment complex set up by the Apurva Natvar Parikh Group India making an investment of approximately USD30 mn which is to be located in Rajagiriya on the border of the city of Colombo. The project which was launched in October 2011 is expected to be completed by June/ July 2014. With views of the Colombo Golf Course and the National Bird Sanctuary it spans across 1.5 acres with a 380,000 square foot complex. This 25 floor complex consists of 188 apartments as well as 2 club levels providing the amenities of restaurants, party rooms, a day care centre, swimming pool, gymnasium, tennis courts, squash courts, basketball court, mini market, children's play area and other convenient facilities. The price of an apartment ranges from LKR22 67 mn with 2-3 bed room units, duplexes with private gardens and penthouses available. Leading Construction company Sanken Construction has been employed for this high rise project. According to ANPG Director Rohan Parikh third of the units were sold by August 2012 with more than 50% of the units sold by March 2013 and he expects all units to be sold before completion.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Contractor Details of the Project Details Iconic 110 Parliment Road Atlantis Development Pvt Ltd (Subsidiary of ANPG) USD30 mn Rajagiriya (near Prima Ceylon Head office) 1.5 Acres Sanken Construction Pvt Ltd 380,000 Sq Ft Complex 188 Apartments 2 Club Levels (Inclusive of restaurants, Party rooms, a day care centre, swimming pool, gymnasium, tennis courts, squash courts, basketball court, mini market, children's play area) Apartment Range Selling Price Average Size Source 2 - 3 Bedroom units, Private Duplexes, Penthouses LKR23 - 65 mn 1,200 4,200 Sqft http://110parliamentroad.com/home.htm

Source : TKS Research/ 8 July 2013

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Altair luxury residencies

APARTMENTS

An iconic development of luxury apartments would be developed by Indian based company at a prime location in Colombo would consist of 2 towers, one straight and the other a sloping tower at an investment of USD250 mn.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Architectural designer Contractor Details of the Project Details Altair Indocean Developers Pvt Ltd (a venture of Indian Company South City Projects Pvt Ltd) USD250 mn Sir James Peiris Mawatha Colombo 2 (Facing Beira lake) 320 Perches (previously owned by Colombo Commercial Company) Moshe Safdie (former architect of Marina Bay Sands Resort Singapore) Sanken Construction Pvt Ltd 68 floors 400 units Grand Lobby with Concierge Restaurants & Spa in Retail Area 25 meter Lap Pool, Leisure Pool and Jacuzzi Pool Deck Garden Gym Jogging Track Outdoor Childrens Play Area and Games Room Steam & Sauna Room Function Room Barbeque Pavilion Sky Garden with Pool, Lounge & Party Room Apartment Range Selling Price Average Size Timeline Source 2 - 3 Bedroom units, Private Duplexes, Penthouses USD 250 - 400 per Sq Ft 1450 - 3422 Sq Ft Due to be completed in 1Q2017 http://www.altair.lk/index.html, http://expatkey.com/index.php?id=143#.Ud_SHzunqC0

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On320 Apartments

APARTMENTS

A residential development due to be completed in December 2014 by John Keells Holdings property arm would see a development of 475 apartment units at Union Place, Colombo 2.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Contractor Details of the Project Details On320 John Keells Holdings USD65 mn T.B.Jayah Mw, Union Place, Colombo 2 80 Perches Sanken Construction Pvt Ltd 37 Floors 475 Units extensively landscaped garden Business centre Walking track State-of-the-art gym Steam room Squash court Indoor games room Club house 3 swimming pools Selling Price Average Size Commence Date Completion Date Source USD 195 per Sqft 907 - 1312 Sqft 2011 December 2014 http://www.onthree20.com/ Source : TKS Research/ 08 July 2013

Source : maps.google.lk / TKS Research

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The Destiny Mall & Residency

APARTMENTS

The Destiny Mall & Residency developed by Imperial Builders commenced construction in the first week of May on the 140 Perch property at the corner of Sir Justice Akbar Mawatha & R.A. De Mel Mawatha, Colombo 02. The development is set to transform the area between the Slave Island railway Station and R.A. De Mel Mawatha with its ultra modern luxury G+44 storey twin tower design which consists of a shopping promenade and apartment complex. Construction commenced at a time where 44% of apartments were sold in a space of 5 months, Imperial Builders estimates to be sold out by end of 2013.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Land ownership Architectural designer Pilling Company Details of the Project Features Details The Destiny Mall & Residency Imperial Builders (Pvt) Ltd USD120.0 mn Corner of Sir Justice Akbar Mw and R.A. De Mel Mw 140.0 Perches 99 lease from UDA ACS Integrated headed by Chartered Architect Mr. Nandike Samaranayake Walkers Pilling 44 Storey Twin tower complex with 258 Apartments and 2 storey luxury Shopping Promenade The shopping mall consists of retail space, a supermarket, two 3D cinemas, bowling alleys, food courts; kiddies play area, 7 guest rooms and much more, making it very attractive to the rental investment market. the apartment amenities include an infinity pool and deck on the 6th level, a business centre, his and her gymnasium and a 200 capacity banquet hall and ample visitor parking LKR15.0 mn to LKR75.0 mn 600 sqft to 2,300 sqft http://www.thedestiny.lk/ Source : thedestiny.lk

Selling Price Average Size Source

Source : maps.google.lk / TKS Research

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MOVENPICK Colombo

HOTELS

This hotel will be one of the very first city hotels opening post war in the business center in Sri Lankas capital. Managed by the Swiss based international hotel chain MOVENPICK, the hotel will be a 24-storey 224-room 5-star, with a complete suite of amenities catering to business travellers. The hotel will feature world-class conference and meeting facilities, four restaurants serving diverse cuisines, and a full range of recreational facilities, such as a fully-equipped gymnasium, a swimming pool, and a health spa.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Details of the Project Details Movenpick Colombo Softlogic Holdings USD 46.6 mn Colpetty (between Liberty Plaza and LB Finance Building) 91 Perches 24 story 5 Star Complex 224 Rooms Conference and meeting facilities, four restaurants serving diverse cuisines, and a full range of recreational facilities, such as a fullyequipped gymnasium, a swimming pool, and a health spa Source http://www.colombopage.com/archive_12B/Dec17_1355730941CH.php Source: TKS Research/ 08 July 2013

Source : maps.google.lk / TKS Research

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Shangri-La Hotel, Colombo

HOTELS

The top international hotel chain is due to open up two hotels in Sri Lanka, one at the Galle Face promenade and in the southern Hambantota area. The development in Colombo has begun with piling ongoing where a 500 roomed hotel would be constructed on a 10 acre land plot.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Land ownership Land Transfer Price No. of rooms Room Sizes Details of the Project Details Shangri-La Colombo Shangri-La international Hotels USD400 mn Galle Face Green, Colombo Fort (adjoining the current Taj Samudra Hotel) 10 acres 99 year old lease USD125 mn Apprx.500 484 - 646 Sqft per room & 968 2,421 Sqft per suite Sushi bar, steakhouse, seafood market and Irish pub Specialty restaurants such as Indian, Islamic, Szechuan and Macanese Sky lounge Meeting facilities spread over 3 floors (48,438 Sqft) Swimming pool and tennis courts Commencement Expected Completion Date Source 2013 2016-17 http://www.shangri-la.com/corporate/press-room/press releases/shangrilas-hambantota-resort-spa-sri-lanka-to-open-in-2014/ Source : TKS Research/ 08 July 2013

Source : maps.google.lk / TKS Research

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Sheraton Colombo

HOTELS

Sheraton Colombo is a hotel complex with an investment of approximately USD80 mn made by Lanka Hotel Residencies Pvt Ltd and its Promoters Greenwater Resorts Pvt Ltd India and Eurocon Building Industries FZC UAE upon the signing of an agreement between LHR and Starwood Hotels & Resorts World Wide INC the owners of the Sheraton Brand. Situated in the Central Business District located down Galle Road Colombo 3 next to the popular Carnival Ice Cream Parlour this Hotel Complex would house 306 rooms inclusive of a Presidential suite and other luxury themed suites along with 3 restaurants an outdoor swimming pool and Spa. The land was required by LHR after their understanding with the Starwood Group on a 99 year lease. The Complex is set to open on the 1st of September 2013.

Fact Sheet
Fact Venture Name Investors Details Sheraton Colombo Lanka Hotels and Residencies Pvt Ltd Greenwater Resorts Pvt Ltd India Eurocon Building Industries FZC UAE USD 80 mn Galle Road, Colombo 3 Apprx.100 perches 306 21 Stories 306 Rooms (Presidential Suite and other themed Suites) 3 Restaurants http://www.sundaytimes.lk/120513/BusinessTimes/bt02.html

Investment Location Land Size No. of rooms Details of the Project

Source

Source : TKS Research/ 08 July 2013

Source : maps.google.lk / TKS Research

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Marino Sands Hotel

HOTELS

A 270 room luxury hotel and the department store is the first tourism related project of South Asias largest furniture manufacturer Damro. It will be constructed on a 1.5 acre land in Colombo 03 with a USD40 mn investment and mainly promoted to Indian middle class tourists through its branch network.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Project completion year: Details of the Project Features Details Marino Sands Hotel Damro Group Apprx.USD40 mn Colombo 03, extending from Galle road to Marine Drive 1.5 Acres 2016 270 room 12 storey luxury hotel and a department store 270 room luxury hotel of 400,000 sq. ft. Department store of 100,000 sq. ft. Three basement car park 200 ft roof top infinity pool 4 restaurants http://www.ft.lk/2013/06/06/post-war-rebound-lures-damro-to-diversifyinto-tourism-sector/

Source:

Source : maps.google.lk / TKS Research

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ITC Hotel Colombo

HOTELS

India-based public conglomerate, ITC Ltd will soon begin the construction of a mixed development project on a 5 acre plot of Galle Face beachfront adjoining Shangri- La project. The proposed mixed development includes a luxury hotel, residencies and a shopping mall at an estimated investment of USD140 mn. However the further details of the project are yet to be published.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Land Cost Land ownership Project completion year: Details of the Project Features Tax holiday Sources: Details Welcome Hotels Lanka (Pvt) Ltd ITC Limited, Kolkata Apprx.USD140 mn Facing Galle Face Green, on the former Army headquarters premises 05 Acres USD147 mn 99 year lease 2018 Luxury hotel, residencies and a shopping mall Not available 10 years from the first year of profits or three years after operations http://www.sundaytimes.lk/130707/business-times/itc-begins-mixeddevelopment-project-near-galle-face-green-51167.html http://www.sundaytimes.lk/120129/BusinessTimes/bt04.html

Army Headquarters

Source : maps.google.lk / TKS Research

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Sancity Business Hotel

HOTELS

A 240 room 3 star business hotel at Colombo 3 is being built by Sanken Construction together with JKH. It will be constructed on 80 perch land in Colombo 03 with a USD23 mn investment and mainly promoted to business tourists in Colombo. JKH is to manage the hotel once completed under their brand portfolio.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Project completion year: Project architect Features Details Sancity Business Hotel Sancity Hotels (Pvt) Ltd Apprx.USD23 mn Green Path, Colombo 03 80 perches 2016 Design team 3 of Singapore Designed as a chic boutique business hotel of 240 rooms 25 storey tower Roof top swimming pool Open air club lounge Dining restaurant of 160 pax on 24th floor Gym 5 lifts Car parking Sanken Construction company 51%, JKH 28% Tax exempt for 7 years from first year of profit http://www.ft.lk/2011/09/02/sanken-jkh-in-jv-for-rs-3-b-worth-25storey-240-room-city-biz-hotel/

Project Holding Tax holiday Source:

Source : maps.google.lk / TKS Research

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Colombo City Centre

MALLS

Abans Group (parent company of listed Abans Electricals (ABAN : LKR 128.20) and Abans Finance (AFSL : LKR31.40) in collaboration with Silver Needle Hospitality have signed an agreement to build a USD100 mn shopping mall including a luxury hotel in the land adjoining Altair luxury residencies in Colombo 2.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Architectural designer Details of the Project Details Colombo City Centre Abans Group and Silverneedle Hospitality USD100 mn TB Jayah Mw, Union Place, Colombo 2. 2 acres Aedas International 200 Room Luxury Hotel Complex Retail space Food court 3D cinema Gym Cyber caf Starting Date Completion Date Source 2014 2016 http://www.ceylontoday.lk/22-32780-news-detail-abans-to-bringcolombo-city-centre.html, http://www.lbt.lk/news/business/4442abans-100-dollar-lifestyle-mall-opposite-beira-lake

Source : maps.google.lk / TKS Research

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Access Tower 2

OFFICE SPACES

Following the successful launch of its first tower for office space, Access Engineering (AEL : LKR20.50) plans to build its second tower in the vicinity of its current premises in a 87 perch land plot. The investment exceeding USD20 mn would include a 170,000 Sqft rentable office space where construction would commence end of 2013.

Fact Sheet
Fact Venture Name Project Company Investment Location Land Size Land ownership Details of the Project Source Details Access Tower 2 Access Realities Two (subsidiary of Access Engineering) Exceeding USD20 mn Adjoining current Access Tower 87 perches Freehold basis 25 storeys, total gross area of 280,000 Sqft and 240 parking spaces Rentable office space of 170,000 Sqft http://accesstowerssl.com/

Source : maps.google.lk / TKS Research

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