LOLC Holdings PLC's strategic investment arm, Browns Investments PLC announced today (17) that it  has entered into momentous memorandum of understanding (MoU) to partner with China Harbour Engineering Company Limited ( CHEC) to commence the Colombo International Finance Center (CIFC) mixed development project in the Colombo Port City (CPC).

"China and Sri Lanka have long established and enduring relationship characterized by economic cooperation and societal collaboration and hence, this partnership further underlines the confidence and the commitment to development in the country through the combination of a world-renowned Sri Lankan conglomerate and a distinguished Chinese enterprise," the company said in a stock exchange filing.

This is a milestone project comprising a land area under development of 6.8 hectares with an investment value totalling US$ 1 billion.

The CIFC mixed development project will be piloted over two phases, whereby Browns Investments is partnering with CHEC for phase one via the incorporation of a Special Purpose Vehicle (SPV) company.

The total investment in phase one amounts to US$ 450 million with a buildable land area spanning 3.06 hectares, which is leased from CHEC Port City Colombo (Private) Limited to the new SPV that will be jointly owned and managed by Browns Investments and CHEC.

This will be a significant undertaking involving the construction of one residential apartment tower, one serviced apartment tower, one office tower and a retail podium on the ground floor. Ascending up to 39 floors, the total Gross Floor Area across the investments will exceed 160,000 square meters, with residential and serviced  apartments encompassing an area of over 88,000 square meters inclusive of parking, retail space of 24,000 square meters, while the office complex will have a cross area of over 48,000 square meters.