Lanka Realty Investments to raise 3.6 bn | Daily News


 

Lanka Realty Investments to raise 3.6 bn

Lanka Realty Investments PLC is to raise Rs 3.6 billion from existing shareholders. Shares are to be issued based on one new share for every two shares currently in issue. Shares will be issued at a consideration of Rs 37.5. Lanka Realty Investments PLC trades under the ticker ASCO.N000 and was previously known as Asian Cotton Mills and subsequently as Ascot Holdings.

Rs 1.8 billion of the amounts raised will be used to reduce the debt obligations of subsidiary companies. Rs 900 million will be used for the acquisition of income yielding commercial assets.

Rs 450 million will be used to develop 2 properties held by subsidiary companies. Rs 477 million will be used for other investments in the real estate sector.

In August the company through multiple related party dealings and the issuance of shares increased its balance sheet by Rs 5.6 billion. Overall consolidated revenue for the quarter ended September 2019 has decreased by 29 percent. The company recently launched a commercial office building in Colombo 10. The company has a subsidiary in the business of operating crushing plants but had not operated any plants for the financial year ending 2019.

The local promoter and investor is M H Jamaldeen who has experience in commercial property in London. 7.7 percent of the shares of the company are held by the general public. The company has stated that it owns a 99-year lease to a seven-acre property in Yala. They intend on developing 30 tented lodges within the National Park.

 


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