Land Sale

The Trade Ministry says NDB Stockbrokers and NDB Investment Bank would be
given the task of selling prime Union Place land belonging to Co-operative
Wholesale Establishment, on the stock exchange early next year. The Trade Ministry says NDB Stockbrokers and NDB Investment Bank would be
given the task of selling prime Union Place land belonging to Co-operative
Wholesale Establishment, on the stock exchange early next year. The proposed sale hit a snag after a bank which had unpaid loans from
Sathosa went to courts to block the sale.

The deal requires a special derivative security to be structured which can
be traded on the stock exchange.

The 226 perch Union Place land is believed to be worth around 5.5 million
rupees a perch.

This would put the value of the block at around 1.2 billion rupees.

The proposed sale hit a snag after a bank which had unpaid loans from
Sathosa went to courts to block the sale.

But trade minister Jeyaraj Fernandopulle is expecting the bank to agree to
the sale after the interest due on the defaulted loan is paid.

The minister says selling the land via the stock exchange is a transparent
method.

To sell the land a special asset backed derivative