One of Sri Lanka’s leading and pioneer investment banks Asia Capital PLC had secured US 16.25 million worth of hotel projects with Japanese investment partnerships, the company’s latest annual report highlights. Accordingly, the company had secured two new projects during the year, a 15-room hotel project and another 100-room beach-front resort estimated to cost USD 2.25 million and USD 14 million, respectively.
Asia Capital PLC (ACAP) Chairman Paul Ratnayeke points out that efforts to further expand their project pipeline prompted them to explore equity-based partnerships with globally renowned investment partners from Japan. Ratnayeke adds that Asia Capital’s main leisure venture Asia Leisure Holdings (Pvt) Ltd, which manages all four of their leisure sector properties and Asia Leisure Travels (Pvt) Ltd., made good on the promise to deliver improved results by increasing year-on-year turnover levels, paving the way for a reduction in the operational loss tabled as at 31st March 2016.
Asia Capital’s core business now focuses mainly on attracting large-scale leisure sector Foreign Direct Investments (FDIs) into the country. Currently the group already have several projects in development pipeline including Galle Heritage Hotel Project, Marine-Drive city hotel project, Vauxhall mixed development project and Union Place condominium project.
According to Ratnayeke with much of the initial groundwork already completed, these ventures are expected to kick off over the next few months, once the necessary planning approvals have been obtained. In his annual review Ratnayeke also highlights that Asia Capital is also looking into the possibility of tying up with a strategic investor to develop the overall leisure sector value proposition and negotiate a fresh capital infusion aimed at strengthening the Group balance sheet.
Further during the year company had leveraged on their expertise in managing boutique style properties to secure a contract to manage a 28-room, beachfront hotel in Kosgoda. The property, which is currently under construction, is expected to come on the market by December 2016, which point will bring company’s room inventory to 98.