John Keells says its ‘integrated resort project’ approved

John Keells Holdings PLC (JKH) yesterday said the ‘integrated resort project’ undertaken by its subsidiary Waterfront Properties (Private) Limited under the Strategic Development Projects Act has received approval from the parliament.

Accordingly, the company said the project site on Glennie Street has been handed over to the contractor and the construction has commenced.

In this regard, JKH made a cash call of Rs.40 billion by way of a rights issue, which also included warrants.

In a circular issued by JKH to its shareholders last year, the company said the investment towards the first phase of the project will be around US $ 650 million.

It also said the project, being under the Strategic Development Projects Act, is an “integrated resort consist- ing of multiple businesses including a luxury hotel, convention centre, entertainment and gaming facilities, international standard shopping mall, luxury condominiums, serviced apartments and office space similar to the integrated resort developments seen in the Southeast Asian region.”

The ter m ‘inte g rated resort’ is a widely used euphemism for resorts with gaming facilities.

However, during the approval process of the three gazette notifications pertaining to investments by JKH, Crown and Queensbury, the government vehemently denied the claims that these resort hotels will have gaming/casino facilities.

The amended gazette notifications presented and approved in the parliament last week referred to super luxury resorts with “associated facilities”.