Lankem disposes prime real estate for Rs.700mn

Lankem Ceylon PLC last week sold the Lanlib Building situated off Nawam Mawatha for Rs.700 million, according to a disclosure made to the Colombo Stock 
Exchange yesterday.

According to the 2017 annual report of Lankem, the firm had pledged the property as security to take a Rs.600 million loan.

The property, with an extent of 40 perches, was in Lankem’s possession since the 2015 financial year, when it was valued at Rs.300 million. Prior to this, the Lanlib Building was owned by the government, and in 2014, our sister newspaper, the Sunday Times, had reported that the government was seeking to sell the property for Rs.600 million to a leading tea export company.

Lankem posted a net loss of Rs.484.3 million in the first three quarters of the current financial year ending in December 2017, which was an improvement of 29 percent year-on-year.

The company, which had Rs.16.3 billion in assets, had Rs.7.2 billion in interest bearing borrowings at the end of the 3rd quarter, compared to Rs. 6.9 billion at the start of the financial year, while total liabilities at the end of the period amounted to Rs. 13.1 billion.

Lankem’s net assets per share fell to Rs. 46.95 from Rs. 78.45 over the course of the current financial year.