The company, which owns the Majestic City shopping and entertainment mall in Colombo, has sold the bulk of apartments in a new high-rise residential tower and finished basic development work in a township, it said in its annual report to shareholders.
About 85 percent of the apartments of the ‘Empire’, the tallest residential development project in the country, had been sold with a further 10 percent signed up.
"The group sees the real estate sector as a key growth sector in the new Sri Lanka," the report said.
"Having just completed work on the Empire and CT Gardens projects and built up a strong team to carry forward this sector, the group is in a pivotal position to lead in this sector and experience rapid growth in the coming years.
"Accordingly, steps are now being taken to increase collaboration in this sector through new investments."
Ceylon Theatres, which also owns the Cargills 'Food City' supermarkets chain, is changing its name to CT Holdings with a new logo to be launched soon.
In the financial year ending March 31, 2010 the group's net profit rose 12.69 percent to 374 million rupees from the year before with sales up 1.68 percent to 39.2 billion rupees.
The bottomline grew owing to profit growth in the retail, fast moving consumer goods and ceramic and tiles businesses.
Earnings per share rose 12.33 percent to 2.19 rupees the year ended 31st March, 2010.
Chairman Anthony Page said the overall results of the group were adversely affected by losses in its property development subsidiary, resulting from high interest rates costing the company over 350 million rupees in interest, and a poor real estate market.
"However, recently concluded sales of units in completed developments and land lots, an improving property market and significantly lower interest rates will eliminate such losses in the future," he said.
"Our investment cost in the property development sector has allowed us to strengthen our position in an important growth sector in Sri Lanka’s revitalised economy. Accordingly, we are now actively pursuing collaboration and investment in our property development subsidiary."
Sri Lanka is recovering from a 30-year ethnic war which ended in May 2009 which has resulted in faster economic growth.
Page said that in the new environment, the group will focus on rapidly growing its retail operations and also expand the FMCG business both internally and by expansion into other categories of food and beverages.
"The manufacturing capacity of the tiles and wall tiles sector is also being expanded with significant direct investment," he said.
"The potential for further diversification would also be actively explored towards significantly expanding its position in the financial services, real estate, and leisure sectors in collaboration with internationally reputed business and finance houses."
source - www.lbo.lk
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