• Mon. Oct 18th, 2021

The latest IPO entrant to Colombo Stock Exchange (CSE), Prime Lands Residencies (PLR) expects nearly Rs 10 billion cash flow over the next 24-36 months from its pre-sold apartments stock, according to an analytical report by First Capital Research (FCR).

PLR is a subsidiary of Prime Lands (Pvt), Ltd, a leader in the real estate sector in Sri Lanka. In identifying a gap between the luxury apartment and the lower-level apartment segments in the country, PLR was set up to meet this gap by making the ‘Affordable Luxury’ concept a reality in Sri Lanka by its parent.

“With the expertise of the parent, PLR has been able to offer unique and ideal locations in and around the metropolitan of Colombo district to its customers,” FCR said.

PLR has five projects in Pre-Launch/Planning Stage with 1,120 units of apartments valued at Rs 16.5 billion and scheduled for completion by FY23-24E.

Furthermore, it holds an unsold apartment inventory of Rs 24.4 billion and Rs 2.1billion of cash which has
been received but yet to be recognized as revenue, according to FCR.

PLR’s current portfolio also consists of five active apartment projects across Colombo city and its suburbs, totaling 563 units amounting to a value of Rs 34.1Bn, including its flagship project “The Grand”, an Ultra-Luxury project located in Ward Place Colombo 07, amounting to a value of Rs 27.7 billion catering to the high-end clientele.

The CSE recently approved the PLRs application for the listing of its ordinary voting shares by way of an offer for subscription.  The company will be listed on the Diri Savi Board (or Main Board as relevant) of the CSE subject to compliance with the CSE Listing Rules and Securities and Exchange Commission of Sri Lanka (SEC) Directives (as applicable).

It will be offering for subscription 100,000,000 new ordinary voting shares of the company at Rs. 10.40 with an option to issue a further 87,500,000 ordinary voting shares of the company at Rs. 10.40 per share, totalling to a Rs.1.94 billion

The proceddings of IPO will be utlisied for payment for the acquisition of land in Meegoda(Homagama), settling the Revolving Import loansobtained for “TheGrand” Project and to further strengthen the working capital of the
Company,

The IPO is due to open on 11th of May, according to CSE.

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