Construction of Havelock City’s office and retail space component to begin next month
Construction of the office and retail space component of the Havelock City project of Overseas Realty (Ceylon) PLC (ORCL) is expected to start next month, and is to be completed within 3 years.
“The super structure construction contract was awarded to an internationally-renowned contractor, and the construction is expected to commence in April 2018, with completion scheduled for April 2021,” ORCL Chairman S. P. Tao told the shareholders in the company’s latest annual report.
The piling work for the 50-storey building, which started in June 2017, was completed on time by February 2018, he added.
The construction of the office tower begins amidst continuing construction of Phase 3 and 4 of the Havelock City project’s residential component.
Phase 3 and 4 consists of 644 condominium units, and by the end of 2017, 53 percent of the Phase 3 stock was already pre-sold.
Phase 4 pre-sales have yet to be launched, but was opened up for reservations last December.
Phase 3 has two towers, named Stratford and Melford, with 304 units, 35 percent of which is completed and is expected to be handed over by mid-2019.
Phase 4, with 304 units in the towers Peterson and Edmonton, is expected to be completed by mid-2020.
The four towers in the earlier Phase 1 and 2 had 445 units, which were sold.
During the 2017 financial year, ORCL’S net profits increased to Rs. 3.2 billion from Rs. 2.9 billion year-on-year (YOY). Revenue for the year increased to Rs. 4.3 billion from Rs. 2.4 billion YOY due to Havelock City Phase 3 presales. Gross profits increased to Rs. 2.3 billion from Rs. 1.7 billion YOY.
Payment of deferred taxes ate into the group bottom line.
Tao’s holding company Shing Kwan Investment Company Limited owns a 38.43 percent stake in ORCL, down from 53.8 percent last year. This was due to the sale of shares to a charity founded by Tao— Jiangsu Tao Shing Pee Education Foundation—which now holds a 24.09 percent stake in ORCL.
Unity Builders Limited, in which Tao also has interests, sold some of its ownership in ORCL to the charity, decreasing the 26.12 percent stake held in December 2016, to 18.66 percent in December 2017.
Other Shing Kwan group companies also own 4.4 percent of shares in ORCL.