Colombo Land sells 36.8 perches of Liberty Arcade for Rs. 640 meters
Colombo Land and Development Company PLC will sell 36.88 perches of Liberty Arcade property for Rs. 640 million.
The company signed an agreement to this effect last week with Seeview Property Developers Ltd., of Meewella Holdings.
The agreement is subject to compliance with the terms and conditions set out in the agreement by January 31, 2022. The Liberty Arcade property is adjacent to Liberty Plaza, with three floors plus a roof, and offers food, drinks and drinks. shopping experiences.
Colombo Land, owner of Liberty Plaza, has had a very difficult third quarter due to the disruption due to the pandemic situation prevailing in the country, with more than 45 days of shutdowns and direct business disruptions, while shopping center operators faced prolonged restrictions. Due to these adverse conditions and restrictions, the company recorded a loss.
Overall, the group recorded a turnover of Rs. 68.52 million (YOY – 43%), a gross profit of Rs. 45.75 million (YOY – 48%) and an after-tax loss of Rs. 40 , 76 million for the quarter ended September 30.
Revenues for the first nine months fell to Rs. 259 million Rs. 327 million a year ago and the loss was Rs. 60.5 million against a profit of Rs. 23 million.
During the quarter, special rent waivers and rent reductions were granted to tenants due to the pandemic situation. In addition, the occupancy rate fell to 65% at the end of the third quarter against 73% recorded in the corresponding quarter. Overall, rental income for the third quarter fell by 43% compared to the corresponding quarter of the previous year. The overall parking lot revenue in the third quarter fell 47% compared to the corresponding quarter of 2020, mainly due to the limited operation of the parking lots due to the pandemic situation.
During the quarter under review, the company successfully restructured its debt to banks and financial institutions of approximately Rs. 1.9 billion at a favorable interest rate.
The increase in finance charge during the first nine months of the year (to Rs. 159 million versus Rs. 138 million) is due to the one-off payment made for the transfer of liabilities and early settlement charges. “With the economy returning to normal, retail traffic is expected to increase over the coming holiday season. We will continue to improve the standards of our properties in order to add value to our occupants, our customers and the business, ”said Paddy Weerasekera, Director of Colombo Land and Group CEO, in his accompanying review. intermediate results.