CT Land Development PLC, the owners of Majestic City, has embarked on a Rs.450 million refurbishment programme of the popular shopping mall cum entertainment complex in Bambalapitiya.
“An additional car park with a parking facility for about 35 vehicles was completed during the year under review and the management has just commenced a refurbishment programme, with a proposed investment of about Rs.450 million, covering much of the services and facilities as well as the shopping areas,” CT Land Development Chairman R. Selvaskandan told the shareholders in the firm’s 2018/19 annual report. He said the refurbishment would spread over a period of about 12 months and is expected to be completed by June 2020.
The funds earmarked for the refurbishment would be sourced internally as well as through borrowings, he added.
“We are confident that the mall would continue to be attractive to its core customer base despite the entry of new properties with different offerings.
The refurbishment being carried out will ensure that the mall is maintained on a level comparable to the market,” Selvaskandan said.
Meanwhile, he said the Easter bombings on April 21 caused a sharp decline in visitors to the mall and a drop in revenue in the outlets within the mall.
“Access to the shopping area also had to be restricted for about 10 days due to security considerations. As a mitigating measure, the management of the company decided to forego the rental charge for this period and offer discounted rentals during this year,” he said.
Selvaskandan noted that although the reduction in rentals would have an impact on the financial results, the management is of the view that the impact would be minimal in the medium term as the situation is expected to improve in the future.
For the year ended March 31, 2019, CT Land Development recorded a net profit of Rs.411.2 million on a revenue of Rs.533.4 million, up 5 percent year-on-year.
Page family-controlled CT Holdings PLC owns 67.9 percent of the company.