UDA calls RFPs for Rs.15bn mixed development project in Dematagoda

• RFPs called from local and foreign investors on DFBOO basis for 99-year lease period
• Will consist of both residential space and commercial space, including office space
• Developers can plan unrestricted number of floors
• UDA will stop accepting proposals on May 7, 2021

By Nishel Fernando
The Urban Development Authority (UDA) has called request for proposals (RFPs) for a high-rise mixed-development project on the 1.47-hectare Dematagoda junction land (537 Watta), with an expected investment of Rs.15 billion. 

RFPs are called from local and foreign investors on a design-finance-build-own-operate (DFBOO) basis, for a 99-year lease period.

The bidders are given two options to develop the high-rise mixed-development project— either as a single land parcel or two land parcels.

As a single land parcel, the interested parties are required to come up with a proposal for the total land area of 1.4786 hectares, which has a base value of Rs.3.1 billion. 

As two separate land parcels, the investors are required to submit proposals for 0.7274-hectare and 0.7512-hectare land plots, with a minimum bid value of Rs.1.4 billion and Rs.1.58 billion, receptively. 

The UDA estimates the overall investment requirement of the project to be around Rs.15 billion.

“A key advantage of this property is that the developers can plan an unrestricted number of floors. We already have secured the preliminary planning clearance for the project. It will consist of both residential space and commercial space, including office space,” a UDA official attached to the project told Mirror Business. 

In addition, he noted that the UDA has offered attractive financial packages to potential bidders.

Under the first package, the selected bidder will be required to make the full payment within a three-month period. The second and third packages offer more flexible payment options to developers and investors, with only requiring a 25 percent upfront payment to be made in three months and the remaining 75 percent to be settled in instalments over two or five-year periods.

The UDA is scheduled to close accepting proposals on May 7, 2021, with plans to accept technical proposals immediately afterwards. The UDA has also scheduled a pre-bid meeting on April 25, at the UDA Auditorium in Battarmulla.