Government getting closer to wrap up deal to sell Colombo Commercial Company property

Government is trying to close the deal on the sale of the Colombo Commercial Company property facing the Beira Lake, to take advantage of upfront payments from investors in addition to annual lease payments. Government is trying to close the deal on the sale of the Colombo Commercial Company property facing the Beira Lake, to take advantage of upfront payments from investors in addition to annual lease payments. Bids were opened on Friday and now go to a Cabinet appointed negotiating committee for the next stage.

Indian property developer Zoom had submitted the highest bid according to sources at the Public enterprise reform commission that is handling the sale of the 11 acre Sir James Peiris Mawatha land.

Investors were asked to bid based on an up front payment and an annual lease rental for 99 years.

Eighteen parties including some regional heavy weights like Kepple Land and South Korea’s Keangnam had submitted bids.

However, sources say many of the bidders had offered a staggered payment for the upfront amount and speculated that one of the companies that offered the full payment could be favored because the government is in a cash crunch.

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