Access gets prime real estate in Colombo 2

• 114 perches of land given on 99-year lease for Rs. 1.172 b
• Land to be utilised for public-related development project as per Court ruling
• Only one bidder out of four submitting project proposals submits development proposal

By Chathuri Dissanayake 

The Government this week decided to give prime land in the heart of Colombo on a 99-year lease for Rs. 1.1172 billion to Access Realties.

The land, extending over 114.56 perches at Mudalige Mawatha, Union Place in Colombo 2, has been given a base value of Rs. 1.1 billion by the Government Chief Valuer, Megapolis and Western Development Minister Patali Champika Ranawaka told the Cabinet, proposing to lease the land to Access Realties.

A legal dispute over the land which was vested with the Urban Development Authority under Section 44 of the Land Acquisition Act prevented any development to date. However, a decision given by the Court of Appeal released the land to be utilised for a public-related development project, the Minister informed the Cabinet.

Following the decision, the UDA called for public biddings through the Standing Cabinet Appointed Procurement Committee (SCAPC) for the land. Although project proposals were received from four bidders, Access Engineering, Whittal Boustead Ltd., China Harbour Engineering Company Ltd, and Access Realties, only one development proposal from Access Realties was received by the UDA at the time of tender opening, Minister Ranawaka informed Cabinet. Following technical evaluation, the SCAPC recommended awarding of the tender to the sole bidder. However, the Secretaries Committee on Alienation of State Land that met on 18 June has recommended to obtain Cabinet approval as the 30 years general lease period has been exceeded.

The Cabinet approved awarding of the tender on condition that the development of the land should commence within a period of one year and be completed within a period of six years from the commencement of the lease agreement.