According to the Sunday Leader, a realty consortium has been offered a 100% tax exemption to develop a two acre site at Sir James Peiris Mawatha in Colombo 2, In addition to the tab breaks, the Sri Lankan government will also allow full profit and capital repatriation.
The realty consortium, South City Projects (Kolkata) is due to build a US$400 million mixed use property which will include high-end retail stores, residential apartments, restaurants and spas in the capital city of Sri Lanka. At the moment the consortium has over 10,000,000 ft.² of developments under its belt, and has floated a subsidiary called Indocean Developers in Sri Lanka for this latest project, while Ernst and Young will be the advisers. Indocean Developers is mostly owned by the promoters of South City Projects, although the identities of the other promoters are as yet unknown.
The project is being designed by the Boston-based Safdie Architects, who are most well-known for their design of Marina Bay Sands in Singapore. The design will incorporate high-end innovation and advanced aesthetics and is expected to turn one of Colombo’s most prominent streets into a promenade as it overlooks the Indian Ocean and faces Beira Lake. The structural designs are expected to be completed within the next 6 to 8 months, and its hoped that the entire project will be finished by 2014.
It is expected that once finished the development will be valued at US$400 million, although the project is expected to cost US$100 million to build which is being raised through a mix of debt and equity. The land was acquired on a 99 year lease from the Colombo Urban Development Authority at a cost of US$32 million. The consortium is also interested in other developments in Sri Lanka, as well as in parts of central and southern India.