Overseas Realty acquires 60% stake in Mireka Capital Land

Overseas Realty (Ceylon) Limited (ORCL), the owners and managing company of the World Trade Centre in Colombo Fort, has entered into an agreement with the Shing Kwan Group - also the principal shareholder of ORCL, to acquire its 60% stake in Mireka Capital Land (Pvt) Limited (Mireka) for a total consideration of Rs. 1.125 billion. Mireka commenced operations as a joint venture between Shing Kwan Investment (Singapore) (Pte) Limited and the Bank of Ceylon to develop and manage the "Havelock City" project in the Colombo Metropolitan area.

Havelock City will change the Colombo skyline as the largest and newest residential and commercial development in the city contained within a single site. Spread over 19 acres, Havelock City is in close proximity to modern day amenities and facilities such as schools, hospitals, banks and places of worship.

Construction work on Havelock City is already under way. This mega-project will consist of eight blocks of condominium housing providing 1,080 apartments of varying sizes set in a lush landscaped environment.

The adjoining commercial component will include a 320 room hotel with additional 200 units of serviced apartments, a shopping centre with 250 shops and major department stores, a supermarket, food court and other facilities, all designed and built to international standards.

When completed, Havelock City will set new standards in condominium living and the retail property development sector in Sri Lanka.

The project is to be built in phases with the final completion scheduled in 2010. The estimated gross development cost is approximately USD 250 Million.

The acquisition of the 60% stake in Mireka represents excellent value.