Sunway Holdings Bhd will launch its RM250 million flagship commercial and residential project in Colombo, Sri Lanka, by the second quarter of next year.
It will be the company's sixth overseas project. Sunway has four ongoing projects in Singapore and one in China.
Sunway managing director Yau Kok Seng said it expects to get the approvals for the development, comprising a 34-storey tower with 70 commercial units and 180 high-end residences, in four months.
Construction will start immediately and the project is targeted to be completed by mid-2014, he told reporters after the signing of a joint-venture agreement with Sri Lanka's Dasa Group in Bandar Sunway, Selangor, yesterday.
Sunway is developing the project through wholly-owned unit, SunwayMas Sdn Bhd, in a 65:35 joint venture with Dasa Group, which is involved in real estate, tourism and fabrics.
SunwayMas will undertake the development on 0.5ha of freehold land owned by Dasa Group.
Yau said that Sunway was targeting more than 20 per cent net profit for the project.
On the home front, Sunway's profit margin ranges from 15 to 30 per cent, while that from its projects in Singapore is 12 per cent on average.
Yau said the residences in its Colombo project will be sold at more than US$200 (RM620) per sq ft, while the commercial units will be priced from US$350 (RM1,085) per sq ft.
"We are targeting locals and foreigners. We hope to sell up to 80 per cent of the project within the first year of its launch," he said.
Yau added that Sunway will look at further collaboration with Dasa Group as well as other developers in Sri Lanka as it embarks on being a long-term player.
The Sri Lankan government is giving incentives, such as a five-year tax holiday, use of duty-free imported and locally sourced building materials, and repatriation of funds invested, to woo foreign developers.
Yau said the project will also act as a springboard for Sunway's other businesses, including civil engineering and construction, building materials, trading and manufacturing, and quarrying.
"There are a lot of projects to build ports, bridges, roads and highways, and airport expansion in Sri Lanka. We are testing the market now through this project and will slowly tap other areas," he said.
By Business Times
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