Business

Access Engineering plans Access Tower III; Marina Sq 25% presold

Following the success of the ‘Access Tower II’ project, which was reportedly fully leased out even before completion, construction company Access Engineering PLC has expressed interest in building Access Tower III in the same location.

We are in the process of exploring the possibility of adding Access Tower III adjacent to Towers I and II,” said Access Engineering PLC Managing Director Christopher Joshua in the company’s annual report for 2017/18.

Elaborating on the reasons for the enthusiasm, he said that the Group’s two major investment properties, Access Tower I and II were “revalued at over Rs. 10 billion” and that Access Tower II “commenced commercial operations during the year with high-end office spaces that were fully leased out even before completion.”

Access Tower II was a US$ 12 million modern office building adjacent to the original Access Tower at Union Place Colombo 2 which began construction in 2013.

Access Engineering also announced that its joint venture mixed development project Marina Square, which broke ground in June on a five-acre site on Marine Drive, is 25% presold.

Access Engineering PLC Chairman Sumal Perera said, “This joint-venture real estate project has already enjoyed healthy presales up to 25%.”

The project, which reportedly has a total investment of over Rs. 15 billion, is a joint venture between Access Engineering, which owns 60% and China Harbour Engineering Company Lanka Ltd. and Singaporean retailer Mustafa’s Ltd., which own 30% and 10% respectively.

Walkers Pilling Ltd., a subsidiary of MTD Walkers PLC, has undertaken the piling work for the mixed-use development project.

Marina Square comprises 36 floors across five towers with 1,068 condominium apartment units and around 150,000 sq. ft. of commercial space, with the apartments priced from Rs. 12 million upwards.

It will consist of units from one-bedroom to four-bedroom, as well as duplex units with private garden areas along with a wide range of amenities, including two acres of landscaped garden area and a clubhouse.

Sumal Perera also said that the company’s ‘Capital Heights Rajagiriya’ project, which will be completed in 2020, has garnered interest from locals and expatriates, with nearly 40% presold as at 31 March 2018.

The 242-unit luxury apartment project commenced construction in September 2017 in partnership with China State Construction Engineering Corporation Ltd. (CSCEC).

Perera said that Access’ entry into real estate development has been an immense success and he expects Capital Heights and Marina Square Colombo to contribute extensively to the company’s bottom line in future.

Access Engineering profits fell 39% in the June 2018 quarter from a year earlier as earnings from condominium sales and rent were offset by declining profit margins from construction.