Business Times

Japanese funding for Balapitiya resort hotel

By Sunimalee Dias

Asia Capital’s subsidiary Asia Leisure will develop a US$6 million hotel “Taprobana” in Balapitiya following its strategic tie-up with Teoria Investments, Japan. An initial investment of US$2 million has already been made.

Asia Capital PLC acting Director/CEO Stefan Abeysinghe said they would be part of the hotel management, construction of which commenced a few months back. Japan funds to Sri Lanka are believed to be scarce and it was considered a “wonderful sign” that investments of this nature were entering the country, it was stated.

Teoria Investments is a Japanese asset management company and is their first investment in the country and marks diversification into new sectors. Asia Wealth Management Company was the financial advisors to structuring the partnership.

Asia Leisure owns and operates three properties, The Park Street Hotel, Colombo, The River House, Balapitiya and the Tamarind Hill, Galle with construction underway on two more properties in Wadduwa and Balapitiya.

The Balapitiya resort hotel is expected to have 30 rooms that would be opened in April next year, Mr. Abeysinghe said. Asia Capital would own 66% of the property and the Japanese entity would have the balance.

A second property is expected to open in Wadduwa where they had purchased a BOI property with the building. This building would be further constructed to establish the new property of Asia Capital with 35 rooms, Mr. Abeysinghe said.

The company is currently working on establishing its own brand as well that would be developed in the future, the CEO said. He pointed out that they would invest in research and development in this regard, and were currently talking to two Indonesian companies.

In this respect they would be incurring Rs.20 million for branding of its boutique hotels and Rs.10-15 million in its resorts, he said. The new brand is expected to provide a “benchmark for service” that would be concluded by the end of this year.

The company is also looking at establishing a hotel management company that would ensure the management of all its five properties.

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