Thursday, June 17, 2010

Colombo Land ready to begin Peoples Park phase II

Property development firm, Colombo Land and Development Company PLC (CLDC) has indicated its intention to launch the People’s Park Stage II development at the car park land at Bodhiraja Mawatha, Colombo 11. According to officials, CLDC has already obtained the preliminary planning approval from the Urban Development Authority (UDA) and is awaiting the land which is presently occupied as the private bus stand to be granted in order to commence ground operations.

“We have also made representations to the UDA to expedite the land exchange and allocate such alternative lands in lieu of the Pettah CTB Bus Stand property in order to develop a new township project in the Western province. We trust that with the new administration of the UDA will make this project a reality in the future,” CLDC Chairman Rohan Tudawe told the group’s stakeholders in his message in its recently released Annual Report for the year ended December 31’ 2009.

According to the report, he said that new real estate development projects continue to remain on the company’s agenda in the fervent hope that the new UDA administration will respond positively to complete the envisaged land exchange programmes such as the long awaited Weli Park Project at Nawala Road and the Peoples Park Stage 2 development in Pettah.

During the year ended December 31, 2009, CLDC recorded a profit of Rs.12.1 million which includes a revaluation reserve before tax, compared to Rs.5 million posted during the same period in 2008.
”We are still encountering the resistance to increase the rentals to offset the enhanced service charges and other related costs. During the year, the average occupancy was below the expected targets and it hovered around 85% which had also contributed progressively to the loss of revenue to the Company,” the chairman noted in his message.

He added that the company’s performance has to be viewed against a combination of two main factors namely, decreasing demand for rented properties and ever increasing service charges payable for upkeep of the present building complex including services.

“Over the years the repair and maintenance expenditure on units owned by the company continued to increase due to ageing and this cost was borne over and above what was paid as the Management Corporation Levy. Share of loss experienced by associate companies is another contributory factor that has also affected the bottom line,” Tudawe pointed out.

CLDC is an investment property company, principally involved in leasing out investment property under operating leases, and also involved in development of investment property. The company, together with its subsidiaries, holds majority of the units in the Liberty Plaza Complex and is involved in the mixed development projects, including Liberty Plaza Complex and People’s Park Stage I in Pettah. Some of its subsidiaries include Liberty Holdings (Pvt) Limited, Urban Developers (Pvt) Limited and Agrispice (Pvt) Limited.

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