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| Sunday, 11 January 2004 |
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| News Business Features Editorial
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Richard Pieris' planned investments on hold by Hiran H. Senewiratne Richard Pieris and Company Ltd (RPCL), which recently acquired a one and a half acre property at Union Place, Colombo from Bank of Ceylon, has put on hold its planned investment. RPCL purchased this land from the Bank of Ceylon at Rs 160 million mid-last year. Part of the land is now occupied by one of the most state-of-the-art food courts in town. The company has halted medium-term business plans for the time being, said RPCL Director Pravir Samarasinghe. He said the proposed investment for a real estate project on the land has been halted due to the current uncertainty in the country. "We are waiting for the right time for future expansions. The economy is not good to go for medium-term projects," Samarasinghe said. The food court, which is already constructed on this property, is believed to have cost the company Rs 35 million. The company had reserved a fairly large area for the proposed real estate project, which is now being used as a car park. This land was initially owned by the Browns Group until it was acquired by the Bank of Ceylon. RPCL had plans to launch a fully integrated development programme linking this property with the adjoining complex at Hyde Park Corner which houses the Arpico supermarket. The company plans to build a condominium complete with residential and office complex, retail stores, entertainment facility and even a hotel in the land. It is looking at an investment period of five to eight years, Samarasinghe added. RPCL, together with its Union Place and Hyde Park Properties, has a total of four and a half acres of land. According to Samarasinghe, the company also invested heavily on a joint venture company by the name of International Groceries Alliance. This company had acquired 40 per cent of the Sathosa shares. This alliance comprises RPCL, Ceylon Biscuits and Ceylon Breweries. RPCL sources said they made their investment on the Union Place property about an year ago. It had then cost Rs 800,000 per perch, but now the value has doubled. The company has also invested on a tyre related company as part of its expansion programme. |
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