June 27, 2017 (LBO) – Sri Lanka’s Laugfs Property Developers, a subsidiary of Laugfs Gas PLC, has formed a fully owned subsidiary to undertake residential apartment complex projects.
The new entity, Laugfs on Reid (Private) Limited, incorporated under the Companies Act last week, is located at their head office premises.
Laugfs Property Developers (Private) Limited is engaged in real estate development while the new company will focus on developing residential apartments.
The property segment of the Group contributed 74 million rupees in revenue and 43.6 million rupees in profits during the last financial year with the completion of their first commercial building with an investment of 1.2 billion rupees.
Their first commercial project which comprises of 14 floors and 85,000 square feet of usable space now houses their head office and was occupied in September 2016.
The Group said it plans to pursue a more relaxed investment growth strategy in property development, with careful scrutiny of attractive locations to increase and diversify their portfolio to residential and commercial development.
The Group has a considerable land bank of properties in prime locations in Colombo and other cities and seeks to enhance their utilization.
Sri Lanka’s property market primarily consists of residential and commercial markets.
With the property market attracting several local and foreign investors, there have been a growing number of apartments and commercial complexes since the ending of the war.
Both luxury and mid-range projects have gained popularity in the market where management of project costs is a critical success factor in this segment.