Ceylon Cold Stores Colombo-2 land valued at Rs. 5 mn. a perchJune 16, 2012, 4:22 pm
The revaluation of investment property belonging to Ceylon Cold Stores (CCS) at Glennie Street and Justice Akbar Mawatha, Colombo-2 has given an indication of the recent rise in land values within the Colombo city.
CCS had revalued its freehold property in Slave Island comprising 737.77 perches at a market value of Rs.5 million a perch against the previous valuation of Rs.3.5 million a perch.
Analysts noted that this unused/under-utilized property will be part of a mega-property development project in Colombo city now nearly finalized by JKH although no formal announcement has been made ahead of the signing-off of an agreement with regulatory and planning agencies.
The CCS annual report indicated that an independent valuer from Messrs. P.B. Kalugalagedara & Associates, Chartered Valuation Surveyors, with recent experience in valuing properties of similar location and category had undertaken the valuation.
It said that the investment property was valued at their open market/fair value and surplus of Rs.1 billion arising from the revaluation was transferred to the income statement.
In determining the fair value, the current condition of the properties future usability and associated redevelopment requirements had been considered with the valuer also making reference to market evidence of transaction prices for similar properties, with appropriate adjustments for size and location made.
The appraised fair values are approximated within appropriate range of values, the report said.