The firm said it had acquired 35 acres for 67 million and secured another 42 acres on a 99-year lease from a company called Asia Sports Management Private Limited.
"Under the first stage, we plan to build 32 upmarket villas that overlook the 50-meter wide fresh water way," the group said in its annual report.
"Each villa, spread over 40 perches of land, is custom designed for owners with space to entertain on the property.
"The villas will have their own gondola to allow residents to access the sea. We hope to sell the villas on a 99-year lease and give owners the option of allowing us to manage on a time share basis."
'Time share' is a concept where a person can 'purchase' the use of a hotel room or property in the same period in each year (such as a week) over the lifetime of the property (such as 25 or 30 years). They can use it or have it rented to other holidaymakers to get some income.In a typical property, times shares in peak seasons where the rooms are easily occupied has a higher value than a low season time share. The holder of one time share could swap it with another in one year and vacation in a different location or country.
Time shares can also be sold when a secondary market develops and their value can fluctuate over time.
Thought time share has attracted an unsavory reputation in some countries due to deceptive or high pressure selling tactics, and promises of secondary markets that do not exist in reality, in well regulated markets have developed in countries like the US they have become popular.
A hotel which will be the second stage in the Citrus Kalpitiya project, will overlook the sea on a one kilometer beachfront and will have 24 individual chalets and 126 resort-style rooms, Citrus Leisure said. It is designed by architect Murad Ismail.
The firm said has been earmarked as a future tourist zone, land bordering the lagoon or the sea, blocked off for the hospitality industry.
"The area is also popular to spot whales or schools of dolphins, within a short distance from the Mainland," the firm said.
"Kalpitiya is also strategically located close to the Wilpattu, wildlife sanctuary that is home to leopards, elephants, the sloth bear and many species of birds."