Eden draws Rs.1.5bn loan from Seylan to finance Dickwella purchase

11 December 2013 07:24 am - 0 - {{hitsCtrl.values.hits}}

A A A

The Board of Directors of Eden Hotel Lanka PLC approved a 6-year funding facility from Seylan Bank PLC worth Rs. 1.5 billion, to finance the company’s purchase of Dickwella Resorts (Pvt) Ltd.

Both Eden Hotel and Dickwella Resorts are a part of the Lanka Orix Leasing Company (LOLC) group. Eden Hotel Chairman, Kapila Jayewardene is also a member of the Board of Directors of Seylan Bank.

The transaction, which was announced on November 1, 2013 as part of a restructuring of the Group’s leisure portfolio, saw Eden take direct control of the 76-room luxury property from LOLC’s hospitality arm, LOLC Leisure Ltd.

LOLC holds a 46.21 percent stake in Eden Hotels through another leisure subsidiary, Palm Garden Hotels PLC.

“This is part of our program to restructure all our hotels. We bought these companies one by one without a proper structure in mind, but now we have started to streamline all our hotels in a more structured manner,” LOLC Chief Financial Officer, Sanjeevani Kotakadeniya had told Mirror Business at the time of the transaction.

LOLC Group acquired Dickwella Resort in January 2012 for little over Rs.1 billion through LOLC Leisure but the transfer has been done booking a capital gain of about Rs.500 million for Rs.1.5 billion.

LOLC attributed the large capital gain to the purchase of land surrounding the Dickwella property subsequent to its acquisition.

LOLC made its first foray in to leisure sector back in mid 2010 with a billion rupee acquisition of Confifi Group of hotels owned by the Furkhan family, and since then it made a slew of acquisitions in to the hotel sector making it a larger leisure sector player.

Confifi Management Services (Pvt) Ltd holds a 10.7 percent stake in Eden Hotel, followed by the Employees’ Provident Fund (EPF) with 9.65 percent of issued share capital.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Eden draws Rs.1.5bn loan from Seylan to finance Dickwella purchase

Comments - 0

Add comment

RECOMMENDED

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Western purple-faced langurs see blue!

Most Viewed in News

A US “Kaputa”, a Lankan “Nariya” and a Presidential “Feast”

Former MP Palitha Thewarapperuma dies from electrocution

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

Sri Lankan among NASA’s new crew for next simulated Mars journey

April 15 declared a government holiday

Street food vendor arrested for verbally harassing foreigner

MIRROR CRICKET

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings

Chamodi, Dewmi spins Sri Lanka U19 Women to big win

TODAY'S HEADLINES

Debt Restructuring Talks: Bondholders Fear Regime Change Impact

Don’t be deceived by NPP and Cardinal Ranjith: UNP

Emirates halts check-in for connections, UL cancels flights to Dubai

Plans afoot to obtain “Blue Flag Beaches” certification for SL beaches

Hardik fined Rs 12 lakh for violating IPL code of conduct after win over Punjab Kings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings