India’s Sandal Lands upbeat on Sri Lankan real estate; mulls US $ 25mn FDI
Emboldened by the strong growth prospects of the Sri Lankan real estate market, India-based regional property developer, Sandal Lands (Pvt.) Ltd, has announced plans for foreign direct investments (FDIs) of up to US $ 25 million within the next three to five years for a residential, commercial or hospitality development in Colombo.
The company has already set up an entity registered with the Section 7 of the Companies Act named Sandal Colombo (Pvt.) Ltd and has also received pre-approval from the Board of Investment (BoI) of Sri Lanka. Sandal Lands is now holding discussions with the Urban Development Authority (UDA) to get its first project in Sri Lanka off the ground within three to six months, with an immediate investment of US $ 10 million.
Sandal Lands, a group company of well-known regional real estate developer Assotech Realty (Pvt.) Ltd, ‘has identified multiple opportunities’ in Sri Lanka but is especially eyeing the mid-price residential segment, in which there is significant untapped potential, Sandal Colombo (Pvt.) Ltd Director Sanjay Kathuria, who is Heading Corporate Strategy and Business Development of the company, said.
“We believe that this is an exciting and opportune time to invest in Sri Lanka, especially as it complements and aligns with the nation’s broader objectives – including the country’s renewed emphasis on strengthening bilateral commercial relations with India and plans to convert the Western Province to a megapolis,” Kathuria stated.
“Utilizing the experience and expertise developed over the years in handling major projects in India, as well as our recent entry to the Maldives, Sandal Lands is well-positioned to successfully undertake this endeavour – which has the potential to create substantial employment locally at different tiers, including at managerial and executive level.”
The company, which recently signed a US $ 10 million public-private partnership (PPP) with the Maldivian government to construct public housing, is in the process of selecting suitable Sri Lankan partners, Kathuria added.
Sandal Lands was also upbeat about its fresh venture in Retirement Living in India, where they have partnered a local operator and are looking to deliver approximately 1,000 residential units in the next five years.
“We will look at similar opportunities in Sri Lanka once our first project starts,” Kathuria said further. Assotech Realty (Pvt.) Ltd, which has been in the industry for more than 13 years, and Sandal Lands (Pvt.) Ltd have collectively delivered projects totalling approximately three million square feet and US $ 150 million in value. With ongoing projects of over US $ 200 million, Assotech Realty has been responsible for highly acclaimed residential projects in India such as Windsor Park, Aspen Heights, Elegante, Cabana, etc. and has projects amounting to 2.5 million square feet under construction at present. The company prides itself for continuously creating meaningful developments, which stand apart in terms of their uniqueness and usefulness to the end-user and makes a conscious effort towards continuously raising the bar – to consistently deliver a better product each time.