REAL - ESTATE NEWS FEED

Size: px

Start display at page:

Download "REAL - ESTATE NEWS FEED"

Hugo Hines
5 years ago
Views:

1 REAL - ESTATE NEWS FEED OCTOBER 23 TO OCTOBER

2 HIGHLIGHTS 1. REAL-ESTATE Palladium Holdings ready to launch comprehensive solutions for high end and mid-tier hospitality - Nawaloka Construction achieves another milestone for ITC 1 Colombo 1 - Read more Saudis plan to build $500bn mega city and business zone - Magnificent living spaces with skyline views at Elektra, Koswatte - Sri Lanka s Port City completes phase one of land reclamation: Minister - Port city phase two EIA for public comments next month - D.P. Jayasinghe set to unveil game changer in construction industry - Lanka s first hyper mall to open in December at Colombo City Centre - Most expensive suburban condos in Rajagiriya Roshan Madawela - Expatkey Properties launches Agriculterra REIT - 2. ECONOMY Foreign investors admire development impact triggered by Grasshoppers Sri Lanka budget promises mostly concealed or breached: Research - 3. INTERNATIONAL New Zealand is banning foreigners from buying property - Oman, Other Gulf States Property Markets to Stabilize in Real estate project in Dubai to be the 'first major development where you can purchase in bitcoin' - Global Stock of Investable Commercial Real Estate Stands at $27.5 Trillion - Read more

3 1. REAL-ESTATE Palladium Holdings ready to launch comprehensive solutions for high end and mid-tier hospitality Envisioning versatile, end-to-end hospitality solutions, Palladium Holdings is geared to provide a comprehensive range of solutions including market entry consultancy, architectural guidance, construction consultancy and services, furniture design and installation, kitchen design installation as well as equipment supply to both hospitality and mixed use development projects under one roof. In addition to the core services offered, the Company provides additional services such as commercial laundry and linen products supply, hotel software configuration and food franchise options. With over 15 years of experience among the leadership team and strong partnerships established with over 150 global hospitality brands, Palladium Holdings is amply equipped to fill the current market gap for a single entity to provide holistic hospitality solutions from concept to completion. Nawaloka Construction achieves another milestone for ITC 1 Colombo 1 A forerunner in Sri Lanka s construction industry, Nawaloka Construction Company recently completed the massive concrete pouring project at ITC 1 Colombo 1. Contracted through Larsen and Toubro Limited, India, Nawaloka Construction is the contractor for the 31-floor hotel tower and podium of the mixed development project. This undertaking by the 68-year-old veteran construction company was the second biggest continuous concrete pouring in the history of Sri Lanka. For 54 hours non-stop Nawaloka Construction s highly-skilled team worked tirelessly to ensure that every aspect of the concrete pouring was carried out to the specifications. With the fastest concrete flow rate in the history of Sri Lanka at 103 cubic meters per hour, the team covered a total of 5650 cubic meters.

4 Saudis plan to build $500bn mega city and business zone Saudi Arabia has unveiled plans to build a new city and business zone - a project that will be backed up by more than $500bn ( 381bn) in investment. Crown Prince Mohammed bin Salman says the 26,500 sq km (10,232 sq mile) NEOM zone will be developed in the north-west, extending to Egypt and Jordan. It will focus on nine sectors including food technology and, energy and water. The crown prince has been leading a drive to move Saudi Arabia away from its dependence on oil revenues. In August, the Gulf kingdom launched a massive tourism development project to turn 50 islands and other sites on the Red Sea into luxury resorts. Magnificent living spaces with skyline views at Elektra, Koswatte Coming up in the fast growing Koswatte suburb of Greater Colombo, Elektra is a condo development project by veteran builder Foreat Homes. The epitome of modernism, in combination with an at-home feeling, even in the sky, Elektra is a perfect blend of the new and the familiar, built upon a strong foundation of architectural and engineering excellence. Situated at 30 Pipe Road, Koswatta, Battaramulla, Elektra comprises 153 apartments with private balconies that face your choice of either the Colombo skyline or open fields opposite, where calming greenery provides a wholly picturesque view. For those willing to invest in the best of both worlds, Elektra has a penthouse currently available that features a stunning 180-degree view that spans multiple settings.

5 Sri Lanka s Port City completes phase one of land reclamation: Minister Sri Lanka s proposed Financial City better known as the Port City has now completed almost 50 percent of the land reclamation with the full completion to be achieved by mid 2019, a Minister said. Minister of Megapolis and Western Province Development Champika Ranawaka says that the Prime Ministers office is working on the legal framework that will govern the area. Once completed the City will function as a special jurisdiction area with its own economic and commercial laws to facilitate operations of global multinational corporations. He said that there will two new companies that would be formed to manage the city and it s utility needs. When complete the city will have reclaimed 269 hectares with 116 hectares being handed over to China Communications Construction Company (CCCC), which is the parent company of China Harbour Engineering Company (CHEC). Port city phase two EIA for public comments next month This will cover the building and land development and the public would have 40 days to comment. Ferando also said that under the previous agreement if traffic congestion in the capital impacted the Port City the Government would have had to pay compensation but under the new agreement this was not the case as they had a comprehensive plan in place. The new city will be linked to Colombo through an elevated highway planned from the Katunayake Expressway to the reclaimed area and then as a second access point it will be joined to Colpetty through an underground tunnel running through Galle Face.

6 D.P. Jayasinghe set to unveil game changer in construction industry D.P. Jayasinghe Piling Co. Ltd., one of the leading companies in the field of construction, piling in Sri Lanka, is set to unveil a game changing innovation for the local construction industry at a special ceremony to be held in Colombo next week. The new methodology, which utilises world-class German engineering, will be a first for the piling industry in Sri Lanka and is expected to take the industry to the next level in terms of quality, speed, flexibility and convenience. The ceremony will be attended by some of the leading business personalities of the industry as well as top experts including engineers, consultants and quantity surveyors. Established in 2013, D.P. Jayasinghe Piling Co. offers a highly-personalised service through its dynamic team of expert service personnel that delivers a complete solution to all clients. It has set a benchmark by utilising only technologically-advanced equipment sourced from Sri Lanka s market leader and German specialists in foundation engineering machinery, BAUER equipment South Asia Ltd. Lanka s first hyper mall to open in December at Colombo City Centre Adding yet another luxury to the Colombo city line, Sri Lanka s first hyper mall, will open in December at the Colombo City Centre (CCC) in Colombo 2. A joint venture between Abans Group and Silver Needle Hospitality and divided in to three segments the total investment is US$ 170 million. Both the apartments and the hotel would be ready by October 2018 under its second stage, said Anand Sundaram, Chief Executive Officer, Colombo City Centre. He said that they are also happy with response for the apparent segment with over 70 percent being sold out stamping investor confidence for the project. Today housing is

7 becoming the most preferred investment opportunity for Sri Lankans and this too has helped them in pre-sales. Most expensive suburban condos in Rajagiriya Roshan Madawela Since 2003, the Research Intelligence Unit (RIU) has been monitoring the real estate market in Sri Lanka. The RIU, whose regional office has been based in Colombo for the past 15 years, is the first company in the island to specialize in reporting and consultancy that leverages their local and international expertise on real-estate market commentary and forecasting. In 2015, they also launched the RIU Maldives office. RIU's research teams have surveyed all residential developments completed, under construction, or in the pipeline in the Colombo Municipal Council area, as well as the surrounding suburbs. In their research, they covered all developments that have over 50 apartment units, as well as a few smaller developments that were in the same price range. Expatkey Properties launches Agriculterra REIT A REIT is a company that owns or finances real estate. REITs give their investors the opportunity to participate in large-scale real estate transactions by purchasing shares of the company that owns or finances them. In many countries that have REIT structures and legislation, the REITs do not pay tax at the company level, and so they avoid the double-taxation problems that many corporations face. Though Sri Lanka is yet to get legislation for REITs, there has been a significant interest in developing one to facilitate investments towards real estate assets.

8 2. ECONOMY Foreign investors admire development impact triggered by Grasshoppers Sri Lanka Aavishkaar, the global venture capital manager, visited Grasshoppers along with a group of investors. They appreciated the beautiful impact made by the company while filling the gap of last mile delivery in Sri Lanka. The group of investors representing Japan, Netherlands and Germany made a visit to Head Office of the Grasshoppers Pvt Ltd, the start-up company affiliated to Kapruka.com, on October 10. They met with Grasshoppers riders and Hub Bosses (Franchisees) who manage the last mile delivery operations as independent, self-employed business operators budget promises mostly concealed or breached: Research A research firm has found out that promises included in the 2017 budget shows poor action with over a half of key budget proposals remain weakest even in terms of information disclosure. Launching an online platform for tracking budget promises, private think tank Verité Research said over 51 percent of the key budget promises lacks sufficient information to track their progress. The platform tracks the implementation of 37 budget promises (proposals with over Rs1bn) announced in the budget speech for which the government allocated 117 billion rupees in 2017.

9 3. INTERNATIONAL New Zealand is banning foreigners from buying property New Zealand is to ban foreigners from buying existing homes as its new government attempts to improve the affordability of residential property. Prime Minister-elect Jacinda Ardern told local media Tuesday that the ban will only apply to nonresidents. "Our goal and commitment is to ban foreign buyers from the existing housing market," she said. Arden, who will lead the country in a coalition with the New Zealand First Party and Green Party, added that the three parties were united in the policy. Oman, Other Gulf States Property Markets to Stabilize in 2018 According to international property consultant Cluttons, Oman's GDP growth is expected to rise to 5.2% next year, aided by the introduction of natural gas production at the Khazzan gas field and the opening of the new airport in Muscat. This will mark the strongest rate of expansion since 2015 and, in turn, should filter down to help steady the country's property market. The Cluttons Muscat Winter 2017/18 Property Market Outlook indicates that Oman's economy, like many of if its Gulf neighbors, is still working its way through a challenging period, triggered by the shock collapse in oil prices in The country, however, is embarking on a journey to wean itself off its dependence on oil revenues through diversification efforts and positive government intervention. Ian Gladwin, Head of Cluttons Oman said, "Although the real estate market has been impacted by a reduction in overall demand, there remain pockets of activity and clear opportunities in both the residential sectors. Primary drivers of these opportunities include major projects such as the Khazzan gas field project and the new airport in Muscat. The airport, which will nearly double passenger capacity to 12 million passengers per annum, is expected to boost the country's

10 tourism and hospitality sector, while also opening new development opportunities for land parcels around the airport." Real estate project in Dubai to be the 'first major development where you can purchase in bitcoin' A 250 million pound ($325 million) luxury development has been launched in Dubai and the people behind it don't mind if you pay in bitcoin. Announced Wednesday by British entrepreneurs Michelle Mone and Doug Barrowman, Aston Plaza and Residences spans more than 2.4 million square feet and is split across two 40-storey residential towers. Its developers claim that it will be the "first major development" to be priced in the virtual currency bitcoin. "Being a designer for 21 years, it's a real passion of mine as the design side, and it's great to be partnering up together as well to launch this. And this is the first major global development where you can purchase in bitcoin," Mone told CNBC in an interview last week ahead of the announcement. Global Stock of Investable Commercial Real Estate Stands at $27.5 Trillion According to CBRE, Tokyo, New York and Los Angeles are the world's largest commercial real estate investment markets, with the global stock of investable commercial real estate assets standing at $27.5 trillion. CBRE examined the relationship between city market size and capital flows into real estate for 122 cities around the world. The research found that there is a high correlation between the size of a city's real estate stock and the volume of investment into that city.

Real Estate Market Page 1

Real Estate Market Page 1 Page 1 Real Estate Market Annual Report 2018 Contact: +94 722 741 305 Mail: info@riunit.com Web: www.riunit.com UK Office 10, Briar Road, Garston, Kingswood, Herts, WD25 OHN United Kingdom Sri Lanka Office