Key players in the development of Colombo Port City have finalized a groundbreaking USD 1.565 billion deal in Beijing, advancing phase two development of the Colombo Port City, encompassing the Marina Project, Marina Hotel, and Colombo International Financial Centre (CIFC) Project.
Accordingly, the corporation framework agreement was signed by Port City Economic Commission, China Harbour Engineering Company, Browns Investments and Hunan Construction Investment Group for the phase 2 development of the Colombo Port City project in Beijing on Tuesday (17).
The total investment value would be around USD 1.565 billion with the agreement covering the development of the Marina Project and Marina Hotel Project and the Colombo International Financial Centre (CIFC) Mixed Development Project.
The agreement has been signed by the Chairman Port City Economic Commission, Dinesh Weerakkody, Chairman of China Harbour, Tang Qiaoliang, Director of Browns Investment, Kamantha Amarasekera and Chairman of Huan Construction Investment Group, Cai Dianwei.
The investment also includes the construction of an International Financial Center and the investment would be around USD 500 million.
The construction is scheduled to begin early next year. A five star hotel too would be included under this investment.
In addition to this development, the next mega break though would be the opening of the duty free complex within the Port City by the end of the year which is tol be operated by a Singaporean firm.
Browns Investment PLC, the strategic investment arm of LOLC Group has secured leasehold rights of additional two prime land blocks in Colombo Port City for US$98 million to undertake the development of the marina and a hotel project adjoining the earlier secured Colombo International Finance Centre (CIFC) project.
The two newly secured land plots are most likely to be developed in partnership with foreign parties.
Colombo Marina Development Pvt. Ltd and Marina Hotel Holdings Pvt. Ltd, subsidiaries of Browns Investments entered into lease contracts with the Colombo Port City Commission to secure 99-year leaseholder rights of 30,776 square metres (7.6 acres) and 13,006 square metres (3.2 acres) land plots.
It will undertake Colombo Marina Development and Port City Marina Hotel Development projects, according to a stock filing with the Colombo Stock Exchange (CSE) .
In December last year, Browns Investments in a joint venture of immediate parent of Port City project company, China Harbour Engineering Company Limited (CHEC), entered into an agreement to jointly invest and manage the Phase 1 of Colombo International Finance Centre (CIFC) mixed development project through a SPV. The investment of the project was estimated at US$ 450 million with a buildable land area spanning 3.06 hectares. According to Friday’s stock filing, Browns Investments had settled US$ 42 million for 99-year leasehold rights of the project and the balance US$ 62 million is scheduled to be settled soon
