Mixed-use development to rise in Colombo

SNH's first NEXT branded hotel is currently being refurbished in Brisbane, Australia.

SilverNeedle Hospitality (SNH) recently announced plans for the development of a mixed-use project in Sri Lanka's capital city, Colombo. SNH, based in Singapore, are collaborating with Sri Lanka-based ABANS Group as part of a joint venture partnership.

Situated in Colombo's central business district, the development will comprise a 200 room NEXT Hotel, a four-storey lifestyle mall and a 30-storey condominium tower.

NEXT is SNH's flagship brand hotel, which is now making its entry into the Asian market. The world's first NEXT branded hotel is currently under development in Australia and is expected to be fully operational in 2014. The project is a refurbishment of Brisbane's Chifley Hotel.

Investment in the Colombo project exceeds US$100 million, but it is not yet known when the development is expected to be fully operational.

"We are now going through the whole process of developing the design. We are about to appoint consultants so that's the next step, though it will take us a little longer before we break ground. I would anticipate it might be towards the end of the year," said Iqbal Jumabhoy, managing director and chief executive officer of SNH.

The Colombo project will follow a similar design concept to the strategy SNH has already employed at the NEXT Hotel in Brisbane.

The development will be situated at the centre of Colombo's new central business district, in the area close to Beira Lake.

"There are a lot of companies, a lot of corporate buildings and a lot of development coming in that area, so it's a very attractive location," said Jumabhoy.

Jumabhoy was also enthusiastic about the prospect of investing in Sri Lanka.

"There has been a resurgence of foreign companies wanting to invest in Sri Lanka and set up operations there. It's got a very welcoming investment climate, it's on the doorstep of the major market of India, it's got very low taxes, it's got a very good port," he commented.

The project is one of the first of its kind in the Sri Lankan market, as there are currently no modern malls of any significant scale in the country, according to Jumabhoy.

Jumabhoy also pointed out that the condominium units would provide something new in Sri Lanka's real estate sector.

"In terms of condominiums, there have been some, but we believe this would be quite different given its proximity to the CBD, as well as the fact that they are part of an integrated development," he said.

SNH is currently in talks to extend the NEXT brand into several other countries in the Asia Pacific region.

"We will continue to increase our current portfolio in the Asia Pacific region by exploring and converting opportunities that fit our sustainable business model and growth strategy," said Jumabhoy.

"A couple of the other projects we are looking at would not have any mall or shopping centre element, but one we are discussing has an office development, and another a residential development. It's not by any means a fixed formula," he added.

 

Article source: http://www.thethailandlinks.com/2013/02/22/mixed-use-development-to-rise-in-colombo/