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Thursday, September 29, 2011

CICL to get Rs. 1bn infusion for operational activities

* Company settles outstanding issues as it makes recovery

* 914 land buyers not received transfer deeds=164 depositors waiting for Rs. 116mn

By Mario Andree

After the strategic investment of Rs. 109 million at an eight to nine percent interest rate made by Investor Access Equity headed by Asanga Seneviratne to resolve longstanding issues of Ceylinco Investment Cooperation Limited (CICL), it is expected to receive another Rs. 1 billion to commence operations.

Seneviratne told The Island Financial Review that his company had loaned Rs. 109 million to CICL, a subsidy of Nation Lanka Finance PLC, with no security from the company at a low interest rate and expects to invest another Rs. 1 billion within six months for its operations, which according to him, has a bright future.

With the infusion of Rs. 109 million in March this year CICL, has been able to address several issues and hoped to transfer deeds to 420 out of 914 buyers next month who had paid the amounts in full.

According to the company investors have been waiting for more than three years to receive their deeds even after making the payments in full.

Also, CICL would settle 52 investors who had invested less than Rs. 100,000 in full with no interest component. There are 164 investors who made deposits at CICL valued at Rs. 116 million.

Answering a query raised by The Island Financial Review, CICL Director Nalin Jayetileke said the land value of the 420 deeds which would be released was Rs. 195 million

The other 494 buyers had been requested to continue making their payments after a sudden backdrop and according to Jayetileke 90 percent of them have reactivated payments. However, the company has failed to attract any new investors so far.

He said the company has identified several free hold plots of land worth Rs. 300 million mortgaged in banks which they hoped to release soon.

So far, the company has released land worth Rs. 450 million which will be given to the buyers.

source - www.island.lk