John Keells Holdings (JKH) is poised to make significant cash flow with two major investments expected to be operational by the first quarter of 2025. Accordingly, the eagerly anticipated City of Dreams (Cinnamon Life) project and the Adani Port development are set to enhance the country’s economic landscape, driving growth and opportunities in tourism and logistics.
The City of Dreams project, a joint venture between JKH and global entertainment giant Melco Resorts & Entertainment, is set to redefine Colombo’s hospitality and entertainment sectors. This integrated resort will feature the rebranded Cinnamon Life hotel, boasting 687 rooms and extensive amenities, including conference facilities and upscale gaming space.
Slated for a phased opening, the Cinnamon Life Hotel is expected to welcome its first guests in the third quarter of 2024. The resort’s second phase, comprising the casino and retail mall, is scheduled to launch by mid-2025. The casino, operated by Melco, is a key attraction, with Melco investing $125 million in the fit-out and securing a 20-year operating license from the Sri Lankan government. These developments were discussed on the JKH Investor Webinar Q4 23/24 and FY23/24 held virtually on 22 May.
JKH Chairman and CEO Krishan Balendra expressed optimism about the project’s impact. “City of Dreams Sri Lanka will be the only integrated resort of its kind in South Asia, attracting tourists from India and beyond,” he said. “We anticipate this project will significantly boost Colombo’s appeal as a premier travel destination, thereby driving occupancy rates and revenue not only for our properties but for the city as a whole.”
About minority holdings in Waterfront Properties Pvt Ltd, the holding company of City of Dreams, held by Ceylon Cold Stores and John Keells PLC Deputy Chairman Gihan Cooray questioned, “What is the best valuation or outlook from a minority shareholder standpoint?”
In tandem with the City of Dreams, the Adani Port project at the Western Container Terminal in Colombo is on track for early 2025. This strategic investment, a collaboration between JKH and India’s Adani Group, aims to bolster Sri Lanka’s position as a key logistics hub in the Indian Ocean.
The Western Container Terminal, upon completion of its first phase, will enhance the port’s capacity by 1.6 million twenty-foot equivalent units (TEUs). This expansion is crucial as it will accommodate larger vessels and increase the throughput of transhipment cargo, which is vital for Sri Lanka’s trade and economic growth. Balendra highlighted the importance of the port project, stating, “The Adani Port development is a game-changer for our logistics sector. It will not only improve operational efficiencies but also attract more shipping lines to Colombo, reinforcing our status as a regional maritime hub.”
JKH is also set to ramp up its suburban property development ventures. With very promising sales figures on its initial Viman project in Ja-Ela, the company has committed to developing other land banks in the region. Balendra said, “Given the initial success of Viman, it looks like it’s a model we can develop.” TP
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