Sri Lanka US$400mn lakefront mall by India group

Aug 11, 2011 (LBO) – Indocean Developers (Pvt) Ltd, a firm backed by an Indian property group, will build a 400 million US dollar shopping and residential complex in a prime lakefront in Sri Lanka’s capital Colombo, officials said. Janaka Kurukulasuriya, chairman of Sri Lanka’s Urban Development Authority said the Indian promoters had paid 23 million US dollars (2,560 million rupees) for a 99-year lease of two acres of land in front of Colombo’s Beira Lake on Sri James Peiris Mawatha.

The land is part of stretch previously owned by Colombo Commercial Company, an old established firm dating back to the British colonial period.

Sri Lanka’s government is offering state land and tax breaks for large commercial developments in Colombo after a 30-year war ended.

Hong Kong based Shangri La and China’s state-run Avic International has acquired state-land in Colombo to build, hotel, shopping and apartment complexes in Colombo.

Director Anil Khetawat said the mixed commercial and residential development will have high end retail stores, restaurants, spas and residential apartments.

The project will be more than 75 percent owned by South City Projects in Kolkotta, he said.
He said the exact equity and debt structure