Mega analysis in developing a new city
CHEC Port City, a joint development authority formed with the union of Government of Sri Lanka and China Harbour Engineering Company (CHEC) has been building the Colombo Port in Sri Lanka. JLL's project development advisory has added value to the construction of the port city.
Sri Lanka is fast developing its key cities to cater to the increased demand from occupiers and multi-national companies looking at the region. While the country is looking to free up excess land for the development of mega commercial projects, it is also planning large-scale reclamation projects across coastal areas.
The Government of Sri Lanka and China Harbour Engineering Company Ltd. (CHEC) have jointly embarked on a Public Private Partnership (PPP) project to develop a smart city in Colombo, including a new International Financial Centre. With an investment outlay of USD 1.4 bn, covering a land area of 270 hectares and over 60 mn sq ft of built-up area, this is the largest urban development project to date in Sri Lanka.
The project is a land reclamation project, entailing the reclamation of 270 hectare of land adjacent to the existing commercial centre of Colombo to create a new mixed-use CBD precinct. The work includes land reclamation, construction of breakwaters and seawalls, arterial roads, canals and bridges, trunk infrastructure. This iconic project would comprise of development across all asset classes including residential, office, retail and hospitality.
The joint development authority mandated JLL to provide development advisory for the entire project. The mega mandate included conducting feasibility studies and valuations for the project.
Looking at the scale of the project, JLL’s team formulated to offer all the services under one umbrella. We advised the client on a continuous basis on project feasibility, master planning inputs and land pricing derivation and strategy. The advisory services in addition to a review of all real asset classes included an in-depth study on the marina, integrated resort, free trade zone, duty-free shopping and permanent residential options.
The advisory assignment was successfully and a final report including market analysis of all asset classes with subsequent recommendations on project phasing and pricing was submitted. The conclusions also included project financial sensitivity modelling for the proposed land pricing and project Floor Area Ratio.
Subsequently, the land pricing derivation and strategy was first completed and has been continuously updated since then. JLL’s continuous efforts have led the project to an advanced stage of development and we will continue to partner with CHEC Port City at every stage of the development process.