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Monday, January 24, 2011

Vallibel One goes for US $ 38 million five star resort hotel

The leisure sector of the Vallibel One Limited Greener Water Limited is to build a five star luxury hotel in Kochchikade, Negombo at the cost of US dollars 38 million, according to the private placement prospectus of the company.

The company has already invested Rs.268 million on a 14 acre land in Kochchikade for this purpose and hopes to build mega 382 luxury rooms which will be offered to customers at an average rate between US dollars 136-165.

Apart from the luxury 382 rooms the hotel will include 42 suites, a spa and fitness centre, 600 seating capacity banquet hall, restaurants, retail arcade, 1500 square metre outdoor pool, and many other modern amenities.

The construction of the hotel is estimated to take 2 years with commercial operations expected to commence in 2013.

The hotel will be positioned as a five star luxury resort targeting European and other high spending tourists and currently the company is evaluating various management options which include engaging an international resort management operator to manage the hotel.

Valiibel One Limited a few days back opted for a whopping 4.9 billion private placement which received extraordinary investor interest, subjecting the shares to be snapped even before the formal opening of the scheduled day for the placement. The private placement offered 160 million shares at Rs. 25 each with an option to issue a further 36 million shares at the same price in the event of an oversubscription of the former figure. Post private placement, Dhammika Perera, the Chairman and Managing Director of Vallibel One and the current Transport Secretary to the Ministry of Transport, holds 80 percent of the shares of the company.Nimal Perera, Dhammika's portfolio manager and close associate functions as the Executive Vice Chairman of Vallibel One. Other Board members are Attroney at Law Harsha Amarasekera (Independent Non-Executive Director), banker Kimarli Fernando (Independent Non-Executive Director), Senior Partner and Country Head of KPMG Ford Rhodes Thornton & Company Rajan Asirwatham (Independent Non-Executive Director) and LB Finance Managing Director Sumith Adhihetti. Vallibel One is expected go public in the near future.

However due to the oversubscription of the private placement, it is believed the shares that would be offered to the public will be less than as earlier planned.

source - www.dailymirror.lk