Friday Nov 29, 2024
Friday Nov 29, 2024
Monday, 1 November 2021 00:09 - - {{hitsCtrl.values.hits}}
CT Holdings PLC has resolved to transfer all Group properties designated for development into a subsidiary focusing on its significant real estate assets to achieve scale and draw more capital.
Its Board resolved to this effect last week. Separately Cargills (Ceylon) PLC (CCP) Board took a similar decision. CT holds a 70% stake in Cargills.
Equity holdings in the Group›s current unlisted Real Estate Property Development subsidiaries will be transferred under the real estate subsidiary.
CTH and CCP to participate in the equity of the real estate subsidiary in proportion to the value of the properties 1 equity holdings transferred plus stamp duty and direct taxes borne by CTH and CCP.
The Board also resolved for CTH to invest an additional sum of Rs. 550 million in the equity of the real estate subsidiary.
All transfers to be effected as far as practicable at prevailing market values. This process would be completed during the third quarter of the financial year 2021/22.
CT Holdings already has a fully-fledged property development and letting commercial property subsidiary in CT Land Development. However CCP and CTH have significant property holdings either directly or through subsidiary companies.
CCP has developed some of its property holdings into Mini Malls with the Group›s Food City supermarkets, KFC quick service restaurants and Regal Cinemas as anchor tenants.
Three such mini malls have been developed by CCP to date in Jaffna, Gampaha and Dematagoda and work is ongoing at two other locations.
CTH has commenced work towards the development of two of its cinema properties into mini malls in the same format as aforementioned. “While the development projects were undertaken under different subsidiary companies, it is considered beneficial to structure such developments and the Group›s existing real estate sector under a single property holding company, since such a structure would allow the real estate sector to achieve scale and attract equity capital, if needed, for future property development projects,” CT Holdings said.
CT Holdings which has interests in retail and wholesale distribution, food and beverage and manufacturing and restaurants, entertainment, and real estate in 1Q of FY22 saw its Group revenue up by 29% to Rs. 29.5 billion and gross profit improved by 33% to Rs. 2.96 billion. Pre-tax profit improved by 420% to Rs. 832.6 million and after tax profit rose from Rs. 83.7 million to Rs. 624.6 million.
