Ceylon Hotels Maldives (Pvt) Ltd. (CHML), a subsidiary of Ceylon Hotels Corporation Plc and a member of the Galle Face Group of Companies has entered into a 50:50 Joint Venture with the Zhen Hua Engineering Company Limited (ZHEC), a Group Company of China Harbour Engineering Company Limited (CHEC).
In terms of the joint venture, CHML and ZHEC will develop, construct and operate an upscale resort of 85-100 rooms on Ambara Island, Vaavu Atoll in the Maldives. Vaavu Atoll is consistently rated as one of the top 10 diving spots in the Maldives. The resort is scheduled to open in 2020 and the total investment is US$ 50 million.
Although CHEC and Galle Face Group already have business interests in the Maldives, this Joint Venture provides a strong competitive platform for both parties to enter into the Maldivian leisure sector.
Founded in 1980, China Harbour Engineering Company Limited (CHEC) is a subsidiary of China Communications Construction Company Ltd (CCCC), one of the Global Fortune 500 companies.
From 2012, CHEC has begun to focus on the investment field and invests mainly in four major areas (i.e., ports, energy, real estate and infrastructure).
At present, CHEC's largest investment project in Sri Lanka is the Colombo Port City Project, with a total investment of USD 1.4 billion.
CHML is a part of the Galle Face Group of Companies, which include The Ceylon Hotels Corporation Plc, Kandy Hotels Company (1938), The Galle Face Hotel Company Limited and United Hotels Company Limited, motels and rest houses around the country and the chain of quick service restaurants under the Avanhala brand.
“We are very happy that we have been able to structure a joint venture between CHEC and our group, I believe there will be many strategic opportunities that would arise in the future.
I am happy to note that both parties are very enthusiastic about moving forward rapidly, and we believe that this relationship will help create long term sustainable value for our share holders,” said Group Chairman Sajeev Gardiner.
The Group owns or has interests in over 20 hotel and leisure properties across Sri Lanka, including such iconic properties as the Galle Face Hotel and the Queens Hotel in Kandy.
The Galle Face Group – headed by its Chairman Sanjeev Gardiner, is primarily involved in hotel ownership, management and operations, real estate and investments.
Apart from being the oldest hotel company in Sri Lanka, it has a diversified portfolio of strategic business interests in textiles, manufacture, footwear, IT and Financial Services through its investment holdings.
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