Fracspace enters Sri Lanka with Rs. 5bn ‘Altaira’ hilltop project

Fracspace Founder Unnath Reddy speaking at the media roundtable discussion 

Pic by Nisal Baduge 

• Hyderabad-based firm to develop 26-acre ultra-premium hospitality site in Bulathkohupitiya with 5-star hotel and private villas
• Project assures compliance with NBRO safety regulations; company eyes future introduction of signature fractional ownership model

By Nishel Fernando

India-based prop-tech company Fracspace announced its strategic entry into the Sri Lankan market this week with the unveiling of “Altaira,” a 26-acre ultra-premium hospitality and residential development in Bulathkohupitiya.

The project, branded with the tagline “Above the Clouds,” represents a commitment of over Rs. 5 billion and marks the Hyderabad-headquartered firm’s first large-scale footprint in the island nation.

The development is situated approximately 1,100 metres above sea level and will feature a 5-star branded hotel, 40 private villas, a wellness facility, and a helipad.

Speaking at the media roundtable held at the NH Collection Colombo this week, Fracspace Founder Unnath Reddy confirmed the company intends to complete the project by December 2028, with a soft launch scheduled for February 14, 2026.

“We have entered the Sri Lankan market because it is hot and fresh,” Reddy said. “This development is going to create job opportunities and uplift the entire neighbourhood, bringing in more investments to the zone.”

The development represents a significant foreign direct investment for the region, which has been declared a tourism development area. While earlier reports pegged the investment at INR 120 crore, Reddy confirmed during the briefing that the value is “above Rs. 5 billion” in local currency terms.

The site in Bulathkohupitiya was selected for its untouched natural ecosystem, distinguishing it from the congested southern coastal belts. The master plan includes two natural waterfalls within the compound, designed to create a unique wellness-focused environment that “solves things people rarely admit,” such as the exhaustion of modern urban living.

Addressing concerns regarding construction safety in the wake of recent cyclones and flooding, Fracspace’s Principal Architect Ranga Fernando, assured that the project complies with all National Building Research Organisation (NBRO) regulations.

The structures will be built on rock-anchored stilts to minimize soil disturbance and withstand ground movement. The architect emphasized that the development occupies less than 20 percent of the land, keeping much of the forest and natural ecosystem intact.

“We are building on rock anchoring stilts, so any movement is minimized,” Fernando told reporters. “We have done all necessary geological surveys and rock scanning. We are complying with the government authority regulations and the Central Environmental Authority.”

Founded in 2022, Fracspace has rapidly expanded its portfolio across India, Indonesia (Bali), Thailand, and the United States, serving over 2,500 customers. The company is best known for pioneering a “fractional ownership” model, which allows investors to co-own high-value luxury properties with ticket sizes as low as INR 10 lakhs (approx. Rs. 3.5 million).

Through this model, investors typically earn returns through rental yields—historically around 8 percent—and capital appreciation, while the company handles property management. Fracspace recently reported a 400 percent year-on-year revenue growth, signaling strong market acceptance of this asset class.

However, Fracspace Ceylon Director Dhannath Tilakaratne clarified that the fractional ownership model will not be immediately available for the Altaira project due to current local legal limitations.

“Since there is no legal structure for this particular format of fractional ownership in Sri Lanka yet, we haven’t introduced it here,” Tilakaratne said.

The company indicated that while the immediate focus is on the hospitality development, the long-term vision aims to make luxury real estate accessible to a wider demographic, potentially including Sri Lankans seeking second homes.