ECONOMYNEXT – C T Holdings PLC has said it has suspended its joint venture property development project to build high-end condominiums in the Kotahena suburb of the Sri Lankan capital Colombo which has been subject to lengthy delays.
The drop in the group’s turnover and profitability of its real estate business in the September 2015 quarter has been attributed partly to “the deferment of the joint venture property development project undertaken with foreign collaboration,” it said.
The other reason for reduced profits from its real estate business in the quarter was the completion of on-going development projects.
CT Holdings is “presently in the process of discussing the project in order to arrive at a satisfactory conclusion,” according to a note accompanying group September quarter interim results filed with the stock exchange.
The company had earlier said its joint venture property development project with Singapore’s Keppel Land, the property arm of Keppel Corporation, had been hit by delays and that the re-commencement and completion dates could not be realistically estimated.
It made a provision for impairment in the value of this investment amounting to 181 million rupees in the 2015 financial year.
The Kotahena property project was started about three years ago with project planning and clearances obtained and piling work completed. (Colombo/November 15 2015)