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Residential Real Estate Construction Company for Sale in Weligama, Sri Lanka

Development of condominium-building (15 apartments+2 commercial), 250m from the beach, 100% foreign-ownership.

Established 1-5 year(s)
Employees 2 - 5
Legal Entity Private Limited Company
Reported Sales Nil
Run Rate Sales Nil
EBITDA Margin Nil
Industries Residential Real Estate Construction
Locations  Weligama
Local Time 2:00 AM Asia / Colombo
Listed By Business Owner / Director
Status Active
Overall Rating
Full Sale
Asking Price: USD 197 thousand (Native Currency: LKR 59,000,000)
Reason: Unavailability of enough own funds to finance the project.
Includes physical assets worth USD 197 thousand
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Documents
CMA PPC
Form 18
Form 1
Survey
Business Overview
- Residential real estate construction company based in Sri Lanka.
- Business was registered last year.
- Currently focused on the development of a condominium service apartment building.
- Current project:
The land is owned by the company, all project documentation has been developed, all necessary government approvals have been received for starting the construction, and an advertising campaign has begun to start pre-sales. There are already purchase requests. The company is preparing to hold a tender for the selection of a general contractor.
The construction period will be approximately 18 months.
- The total profitability of the project, in case of sale of all apartments, is 50-55%;
- The opportunity to leave apartments (all or part of them) in the ownership on account of dividends or profits for subsequent rental and receive passive income. In this case, taking into account the low cost for the developer, the profitability will be ~ 20% and the payback period will be around 5 years.
- The total amount for the complete project is LKR 390 million (construction work and equipment, general commercial and administrative costs).
- There are also options for financing the project:
1. Due to the sale of apartments;
2. Project financing by Sri Lankan banks around 12% per annum in Sri Lankan rupees.
- Pre-sales starting price LKR 720 000 per sq. m. (Incl. VAT) The market price of the completed apartments is LKR 900 000 per sq. m. (Incl. VAT)
- The company is registered with an incorporation certificate and holds Urban Development Authority Approval, Coastal Dept. approval, Fire Dept. approval and all the necessary approvals are in order.
Products & Services Overview
Development, construction and sales of 3 types of apartments (1 and 2 bedrooms, penthouses with a private rooftop and 360 degrees’ sea and city view apartments).
Assets Overview
Tangible assets: Land valued at LKR 45 million.
Intangible assets: all the business infrastructure, approvals, drawing and design, financial business models, website, social media groups, preliminary purchase requests, and the team are at the pre-construction stage.
The total cost of the project after completion of construction will be LKR 793 million NET.
Facilities Overview
Highlights of the building:
G+3 building, 15 parking spaces, total building area 1,680 m sq, total apartments (area for sale\lease) - 1,280 m sq, 86 m sq-commercial space for lease.
Common facilities:
- Swimming pool for adults and children.
- Gym.
- Fitness.
- 24-hour front desk.
- Meeting room and co-working.
- Private and common lounge rooftops.
- Apartment cleaning.
- Laundry service.
- Rental management.
- Front desk service.
- Generator.
- 24\7 security.
- Repair and maintenance.
Complex design and architecture are done by an international architectural team, in compliance with all European norms and standards for a business-class residential complex.
- 250 meters from the Indian Ocean.
Situated near the main beach of Weligama and surfing spots with beautiful sunrises and sunsets.
- Professionally designed apartments located on a quiet, prestigious and wide street, away from noisy railways and busy highways.
- Entire city infrastructure within walking distance: shops, supermarkets, restaurants and bars, bus and train stops, fruit, vegetable and fish markets.
- Popular tourist destination for renting out apartments with popular booking services.
(Airbnb, Booking, Expedia, Tripadvisor)
Capitalization Overview
The project is funded by the foreign shareholder's own funds. There are no loans or encumbrances. The land is owned by the developer company.
Recent Activity
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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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