Dec 12, 2021

UDA seals deals worth US$ 1b. Featured

The Urban Development Authority (UDA) has sealed two deals with foreign investors to lease out state lands in Colombo and netted nearly US$ one billion with more talks underway to lease more lands, a top official said.

Urban Development State Ministry Secretary Sirinimal Perera told the Sunday Times that a leading Indian private hospital had signed a Memorandum of Understanding (MOU) to obtain on lease five acres of land in Dematagoda for US$ 200 million. A hospital would be set up under the project.

He said that under a China-Dubai joint collaboration, the existing Summit Flat land in Colombo’s Keppetipola Mawatha would be leased out, bringing in a revenue of US$ 755 million. The 10 acre land is to be made use for a 3,000 unit apartment complex.

The Secretary said the draft MoU had been sent to the Attorney General’s Department to be finalised shortly.

Among the other proposals currently under negotiation are the nine-acre Chalmers’ Granary in the Fort, a 1.5 acre land located beside the Beire lake on D.R. Wijewardene mw, Colombo 10 and 50 more acres in Ja-Ela,
Katunayake and Galle.

UDA Director General Prasad Ranaweera said that for the Chalmers’ Granary, a Malaysian investor had come forward for a mixed development project including hotels, apartment and a shopping complex.

He said the design proposal for the project had already been submitted and the land value itself had been estimated at US$ 125 million. The UDA was looking at a lease of five times the land value.

Mr Ranaweera said that for the1.5 acre land at D.R. Wijewardene Mawatha, a Chinese company had started talks to put up a hotel and an
apartment complex.

A leading Singapore-based logistic company has expressed interest in the lands in Katunayake and Galle while another company had shown interest in the Ja-Ela land, he said.

Meanwhile a Swiss company has signed an MoU for a cable car project between Nanu Oya and Nuwara Eliya covering a distance of 4.5km for a lease of US$ 55 million. The project is to be completed in 18 months.

Mr Perera said that to promote other lands available for lease, two road shows would be held in Japan and Dubai shortly.