Sri Lanka EPF takes stake in Weligama hotel
COLOMBO, Dec 02, 2014 (EconomyNext) – Sri Lanka’s largest pension fund, Employees Provident Fund (EPF), has bought a stake in a hotel being built on the south coast by East West Properties to be run by the Marriott chain next year.
Weligama Hotel Properties, a subsidiary of East West Properties, has issued 45 million shares to the EPF at nine rupees each through a private placement, according to accounts filed with the Colombo Stock Exchange.
The CSE has just transferred East West Properties out of its default board to which it was sent for not filing accounts.
East West Properties said in its annual report for 2014 said the sale to EPF reduced its stake in Weligama Hotel Properties to 84.99 percent from 99.99 percent.
EPF has spent 405 million rupees to acquire a 15 percent stake in Weligama Hotel Properties, a 200-room hotel at Matara Road, Pelena to be completed in 2015 and handed over to Marriott International for management.
East West Properties Managing Director Vijitha Wijesuriya the super structure of the
Weligama Bay Marriott Resort & Spa was completed during the year and mechanical, electrical and plumbing services were being installed.
"A significant milestone reached for the project was the approval of the mock up guest rooms received by Marriott International," he told shareholders, adding that "aggressive sourcing and value engineering" had reduced the interior fit out cost by as much as 45 percent.