June 04, 2011 (LBO) – Sri Lanka’s John Keells Holdings is expanding its property business with the acquisition of a six-acre site in a suburb on a key road to the international airport north of the capital Colombo. The conglomerate said it wants to expand its land bank by acquiring sites with a “high development value” as the property market picks amid a tourism boom and accelerating economic growth after the end of the island’s 30-year ethnic war.
“Currently, we are in the process of finalising the purchase of a six acre site in Kapuwatte, Ja-Ela, which has excellent development potential as it is located adjacent to the Colombo-Katunayake airport road with a wide road frontage,” the company said.
“Development plans for this site are currently being drawn up,” it told shareholders in the company’s annual report.
The establishment of an efficient “design-based construction model” will allow for flexibility in developing products targeted at the “appropriate segment” of the market, it said.
Lower interest rates and increasing disposable incomes should also help drive growth in the property market.
“The possibility that interest rates will remain at present levels could spur the property marke