Janashakthi to lease Staple Street land for Rs. 1.93 b

Monday, 1 February 2016 00:00 - - {{hitsCtrl.values.hits}}

Deal with Sanken Construction to bring Rs. 940 m profit; 50% advance
of Rs. 965 m already receivedSanken to build and sell condominium apartments

Janashakthi Insurance Plc has announced plans to lease its Staple Street Colombo 2 land to Sanken Construction Ltd., for Rs. 1.93 billion.

The purchaser has made a payment of Rs. 965.3 million on 23 December 2015 being 50% advance. The profit generated out of this transaction is approximately Rs. 940 million for Janashakthi.

The agreement entered into with Sanken is subject to and conditional upon Janashakthi obtaining all UDA approvals and that from the Cabinet Minister for the assignment of leasehold rights and approval to permit the purchaser to construct residential condominium apartments and sell and convey free hold rights of the same to its prospective buyers.

The transaction is due to be concluded by 25 March 2016 subject these conditions.