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Having gained experience in the Uk in the field of property development for over 30 years, UK based Sri Lankan property developer Phylix Selvadurai entered the local property development market in 1995.

Global Investment Lanka (Pvt) Ltd., a BOI venture was set up to purchase a block of land at Marine Drive, Colombo 6 at a cost of approximately Rs. 24 million on which site the Global Towers Hotel Complex was constructed. In June 2002, the company commenced construction work of the apartment complex and completed the 56 apartments in July 2004.

Todate the company's maiden project has been an outstanding financial success to the shareholders and investors. This position is reflected strongly in the published financial statements of the company which have just been released.

On an investment of approximately 658 million and on project income of approximately Rs. 873 million, the company was able to record a highly satisfactory project profitability of Rs. 214 million, thereby achieving a profitability of 25% on turnover and 33% against the investment.

According to Selvadurai the project has several remarkable features including the fact that the project commenced and was completed on target within two years. "We had no bank borrowings either locally or overseas as the equity capital that the promoters brought into the country along with the advance payments received on pre-sale of apartments was sufficient for the project to be completed without any financial hardships.

All 56 apartments were pre-sold before the building operation was completed and this assisted the cash inflows to a great extent". The company's management and financial consultant Nivard Cabraal said that the rental guarantee of 10% offered to the investors on the purchase price of apartments enabled the company to lease-back all the apartments for an initial period of three years with an option for further renewal.

"This offer enabled the company to pre-sell apartments to Sri Lankan expatriates and other foreign nationals without much difficulty, while the ability to take the apartments back on leases enabled the company to commence the Global Towers Apartment Hotel", said Cabraal.

www.ceylincoproperties.com

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