Extracted from The Daily Mirror
Indocean Developers, the promoter of Sri Lanka’s architecturally-unique twin-tower high rise development Altair, has reported significant buyer interest in Japan, following the company’s participation as the sole real estate sector entity at the recent Sri Lanka Business Forum in Tokyo.
One of just a handful of Sri Lanka based companies to make presentations to a representative audience of more than 300 Japanese investors at this forum also attended by Japanese Foreign Minister Fumio Kishida, Indocean Developers highlighted the investment potential and tax benefits of the luxury apartments the project offers. “The response from Japanese investors who already have investments in Sri Lanka, as well as investors who are assessing the country’s potential has been extremely encouraging,” said Pradeep Moraes, Director of Indocean Developers.
“The enquiries we are receiving reaffirm our belief that the property development sector could be influential in the country’s efforts to attract FDI.”
He said the current high rental yields of 8 – 10 percent, capital gains of over 15 per cent recorded in the luxury apartment sector, the fact that capital gains on resale of apartments are tax free for foreign nationals, and the opportunity to be part of an iconic structure that will forever alter the Colombo skyline, were among the key elements attracting Japanese interest in Altair.
Foreign nationals are permitted to purchase apartments above the fourth floor and have no capital gains tax on the sale of property. Capital and capital gains can be freely repatriated. Income tax is only payable on rent at the maximum effective rate of 18 percent depending on the total income in Sri Lanka.
Projected to be a benchmark for contemporary living in Sri Lanka, Altair, designed by the architectural genius Moshe Safdie, will bring a new dimension in aesthetics to Colombo’s skyline. It is intended to be a one-of-its-kind development in South Asia in terms of architectural design, structural engineering, and living experience. Comprising of two tower blocks, one of 63 storeys which leans in to a taller, 68-storey tower, Altair will offer its 400 apartments spectacular views of the Beira Lake, the Indian Ocean and the city of Colombo. The development’s 1.5 million square feet of high-end eco-friendly living space will be supported by 40,000 square feet of supportive up-market retail space. The project is scheduled for completion in 2017.
Indocean Developers is a joint venture of the six conglomerates that makes up the South City Group, which brings together over 150 years of cumulative development experience. One partner alone has a market capitalisation is excess of US$ 5 billion, and the constituent partners of the Group have completed 50 million square feet of real estate development and currently have another 20 million square feet of space under construction.