(VIDEO) Will valuable property in Colombo go into the hands of private investors?

COLOMBO (News 1st); Sri Lanka's Government is planning on launching multiple development projects aimed at revitalizing several buildings and lands surrounding the Colombo Port City as Public Private Partnerships (PPPs).

The Cabinet of Ministers on May 17th approved the proposed investment facilitation structure for the newly formed Selendiva Investments Limited, allowing the firm to setup three investment portfolios under the private — public partnership (PPP) model for facilitating institutions and investors.

But, what is Selendiva Investments Limited?

Selendiva Investments Limited was established last year under 100 percent ownership of the General Treasury based on a Cabinet decision.

This company is empowered to go ahead with any investment project with respect to any property owned by the Urban Development Authority.

What is expected of Selendiva Investments Limited?

The company is expected to transform several underperforming State-owned assets viable, profitable and marketable assets.

It is tasked with identifying potential investments and providing the necessary facilities for investment flow.

It can also enter into long-term lease agreements on commercial conditions with lest to any land owned by the Urban Development Authority.

Selendiva Investments Limited will also make it easy for the investors to secure necessary approvals with respect to private investments.

It can secure the services of an accepted marketing company for its PR campaigns aimed at attracting investors.

Selendiva Investments Limited is also tasked with creating a procurement process for its services and investments.

How does Selendiva Investments Limited carry out investment projects ?

According to the cabinet memorandum on Selendiva Investments Limited, a Holding Special Purpose Vehicle (SPV) operates under Selendiva Investments Limited.

If a property owned by the Urban Development Authority is to be used as an investment project, the Holding Special Purpose Vehicle (SPV) must set-up a separate SPV for that particular investment which will identify investors.

What properties have been selected for investments?

Prime Minister Mahinda Rajapaksa in his capacity as the Minister of Urban Development and Housing sought the approval of the Cabinet of Ministers to move ahead with three investment portfolios—’Colombo Fort Heritage Square’, ‘Immovable Property Development’, and ‘The Government — Owned Hospitality Sector’, under Selendiva Investments.

The proposal aims at opening multiple properties in Colombo and its suburbs for investments.

Colombo Fort Heritage Square :

Grand Oriental Hotel and York Building spanning across 1.57 acres

Gafoor Building spanning across 0.75 acres

Ministry of Foreign Affairs spanning across 1.5 acres

Postal Department Head Office spanning across 0.81 acres

All the above properties are located across Fort, Colombo.

Immovable Property Development:

Cey Nor Restaurant located close to the Lotus Tower

The mega mix development project of Waters Edge hotel

International Coordination Centre in KKS, Jaffna.

The Government — Owned Hospitality Sector :

The Hilton Colombo and Sports Center

Grand Hyatt Colombo

The governments objective is to move ahead with three investment portfolios—’Colombo Fort Heritage Square’, ‘Immovable Property Development’, and ‘The Government — Owned Hospitality Sector’, under Selendiva Investments.

Incidentally, these portfolios are expected to make it to the Colombo Stock Exchange.