Lee Hedges in Rs2.8bn Sri Lanka serviced apartment project
ECONOMYNEXT – Lee Hedges Plc, a publicly traded company in Sri Lanka, said it will build a Rs2.8 billion multi-storied serviced apartment project in the capital Colombo.
The Board of Directors had formally approved the decision on August 26, the firm said in a stock exchange filing.
"Although there is an increase in the supply of residential apartments, demand for property in a prime location such as ours is likely to be steady," Chairman S R Vamadevan told shareholders in March 2016.
"The company can also benefit from short rental of apartments on account of the steady increase in the tourism sector.
"The developments undertaken by the company will enhance the value of the assets and its future income."
The building is coming up on Galle Road, Colombo, in an upmarket suburb.
Lee Hedges (formerly Shaw Wallace and Hedges) is one of Sri Lanka’s oldest companies, started during the British Colonial era.
The firm said it is seeking shareholder approval to lend up to Rs1.2 billion to a subsidiary that is building a mixed development project, also on Galle Road, in Colombo.
The firm said earlier that Tudawe Brothers had been given a Rs978 million contract to build it. (Colombo/September 04/2016)