The Urban Development Authority wants to kick start the construction industry by leveraging its massive real estate holdings.
The UDA has an estimated ten billion rupees worth of land in and around Colombo city. The government agency, which is part of the Western Provincial Development Ministry, wants to release some of its land to developers. It also wants to raise new funds to start new construction projects.
rnBy collateralizing debentures with land and also securitizing lease rentals, the UDA is hoping to raise about ten billion rupees.
rnldblquote We have a stream of income coming from our buildings, like rentals, long leases and short leases,
dblquote Lakshman Jayasekera the Director General of the Urban Development Authority says.
rnldblquote We are ready input these as collaterals and raise debentures. The negotiations are in an advanced stage.
rnThough the UDA wants to get the exercise realized soon the banks have been slow to respond.
rnThe agency is also hoping to raise