August 18, 2012 (LBO) – Sri Lanka™s Shaw Wallace and Hedges PLC plans to secure a 99-year lease on its Colombo property from the Urban Development Authority, a report said. Shaw Wallace has now told shareholders that it has plans to secure on a 99-year lease from the UDA an extent of 52.9 perches of land in front of the Colpetty property on the Galle Road side. “This would enable the company to amalgamate both lands and go in for a meaningful development on the Galle Road side,” a circular to shareholders said.
In order to secure funds to finance the recommencement of the project and also to settle the debts incurred by its fully owned subsidiary, Pioneer Properties & Lee Hedges Limited, in connection with developing the project and constructing the Mayfair City apartment complex, the company intends selling off part of its prime property in a deal which constitutes a “major transaction” in terms of the Companies Act.
Shareholder approval is necessary for such a major transaction and the EGM has been summoned for this purpose. The 52.92 perches of Galle Road frontage land, in front of its Colpetty property, enables the company to to amalgamate both lands and go fo