Access’ projects at hand worth Rs. 36 bn

Access Engineering PLC’s ( AEL) remaining value of ongoing projects is at Rs. 35.8 billion. Out of this, buildings and structures consist of 52 per cent, roads and highways along with water and drainage account for 16 per cent each. The balance is construction material such as concrete and asphalt. This was revealed at a presentation by Access at the Softlogic Investor Forum last week.

The company is targeting four strategies in its medium term plan. The first priority is to consolidate its core business. “Then it’ll be to strengthen forward integration/real estate, strengthen backward integration/production plants and consolidation of subsidiary business,” the Access official said.

On forward integration/real estate, the company’s Marina Square and Capital Heights are in the top slot. Marina Square is the largest single phase condominium development in the country and is a joint venture between AEL with 61 per cent, China Harbour Engineering Company Ltd (CHEC) with 33 per cent, and Mustafa Singapore with 6 per cent.

Marina Square has 1068 luxury apartment units in total with one, two, three and four bedroom apartment options with 30 per cent already sold out, the official said noting that it has 150,000 sq ft of commercial space. Marina Square’s piling and excavation has been completed and the main contract negotiated to be awarded, he added.

Capital Heights which is a joint venture between AEL ( 50 per cent) and ARSH Holdings (50 per cent) has 242 luxury apartment units in total with two bedroom, three and four bedroom apartment options and is 50 per cent already sold with its super structure completed and finishing works underway, he said.

The UDA Car Park development involves an eight story car park with 500+ parking slots. This will optimise the office space of Access Tower 1 and 2, the official added noting that approval process for this is underway.

Consolidation of subsidiary business includes ACCESS REALTIES I and II which is a 325, 000 sq ft of A grade office space construction. “It will be 100 per cent occupied by globally reputed tenants,” the official added.

Access subsidiaries - Sathosa Motors PLC and Access Motors – have posted Rs. 83 million profit after tax. The company’s new workshop is to be upgraded and renovated with Rs. 300 million, the official said.

WUS Logistics Sri Lanka’s largest purpose built warehouse of approximately 500,000 sq ft will be completed within two years. The company acquired freehold land at Vauxhall Street - 87.5 perches - for Rs. 900 million. The warehouse, a BOI venture, will be leased for 10 years and beyond.

AEL’s 30 per cent associate, ZPMC Lanka with ZPMC China Commission deals in repair and maintenance of port machinery in Sri Lanka and beyond.