Sri Lanka’s RIL Property mulls buying more real estate, strategic alliances

ECONOMYNEXT- Sri Lankan commercial real estate developer RIL Property is considering buying property and striking strategic alliances giving access to suitable sites in Colombo’s business centre given growing demand for commercial space.

“The growing demand for Grade “A” commercial property in particular augers well for RIL, especially since it is our core business,” said RIL Property chairman Sunil Wijesinha.

The firm’s Parkland property in Colombo, with which it entered the market in 2016, when the demand for Grade “A” property was at its peak, remains fully occupied by local conglomerates and multinationals, he said.

Parkland is a 22 storey Grade ‘A’ office building with a gross floor area of 450,000 square feet.

Its newly renovated and expanded property next door, called Parkland 1, formerly the Readywear building, launched to the market in March 2019 had secured 72 percent confirmed occupancy, mostly from existing clients occupying Parkland.

“As a supplier of Grade “A” commercial space, I believe RIL has an important role to play in strengthening Sri Lanka’s position as a key investment hub in Asia,” Wijesinha told shareholders in the company’s annual report.

It said that as part of efforts to expand market share, RIL Property was considering “outright acquisition of property that presents significant potential for future capital appreciation.”

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At the same time RIL said it will also remain open to pursuing strategic alliances that would provide access to suitable sites within or in close proximity to Colombo’s Central Business District.

“Given the ever growing demand for commercial space, the focus for the long term would be to grow market share that would ultimately position RIL as the market leader in the. country’s Grade “A” commercial property segment.”
(COLOMBO, 11 July, 2019)