JKH spends Rs. 300mn to buy land for expansion

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(Srilankamirror) – John Keells Holdings (JKH) has recently acquired 60 perches land adjoining its head office in Glennie Street in Colombo 2 at a cost of Rs. 5 million per perch in a deal worth Rs. 300 million, the media reports.

The price paid for the latest acquisition to further expand its land base of around 10 acres is reportedly in line with the FY12 valuation of Ceylon Cold Stores land in Colombo 2. The value in the previous year was Rs. 3.5 million per perch.

JKH holds the estimated 10 acre land base mostly free-hold and a few on lease within the Glennie Street Head office complex.

The latest 60 perch block that has been acquired is behind Cold Stores premises and next to cleared area which houses a temporary visitor car park.
Analysts have viewed the acquisition as a precursor to plans by JKH to launch what is billed as the biggest ever private sector mixed development project costing at least US$ 500 million.

In JKH’s 2011/12 Annual Report, Chairman Susantha Ratnayake has said: “The Property group has initiated plans to embark on the development of multiple commercial and residential properties to capitalize on the growth opportunities in the property business.”