Written By
Echelon
Business News OutletGlobal Housing and Real Estate (Pvt) Ltd has evolved over two decades, marked by milestones such as the Ocean Breeze Negombo project. The company’s unique blend of luxury residencies and apartment living has attracted investors, offering both ownership and a hotel-like experience. As expectations loom to grow the tourism sector in the country, Dasun Wickramarathna, Chairman of Global Housing and Real Estate, discusses the organisation’s ambitious plans to respond with projects in Colombo and Kandy, catering to diverse needs while shaping the future of Sri Lanka’s real estate.
Insights on the growth and successes of Global Housing and Real Estate
Operating as developers for over two decades, we initially focused on traditional apartment projects. In 2017, the launch of Ocean Breeze Negombo marked our entry into the hotel residency segment, offering a unique concept blending the luxury residency experience with apartment living. The theme ‘Own Your Own Luxury, Live in a Star-Class Hotel Residency’ attracted investors, shifting the focus to investment value.
This approach resonated with expats and investment-oriented individuals seeking modest investments with substantial returns. Some clients have achieved over 100%, with a few reaching approximately 200% ROI. Those who invested in our Ocean Breeze Negombo project enjoy rental income returns exceeding 20%.
Expanding from our success in Negombo, we brought our hotel residency model to other locations. Our distinctive model allows investors to enjoy their properties and entrust management to us. Multiple options, including revenue share and fixed rental income, offer flexibility, setting our model apart from typical long-term rental agreements.
Could you elaborate on how your rental model combines the convenience of a hotel experience with apartment ownership?
We employ a distinct rental approach akin to platforms like Airbnb and Booking.com. We sell a hotel room experience, listing individual rooms on social media and booking engines while clients retain ownership of the apartments.
Adhering to apartment ownership laws, our 432-square-foot units focus on generating rental income, allowing clients flexibility to live in or rent out. We offer a comprehensive package with a fee for room service, housekeeping, key management, and guest relations services. Clients can also market through platforms like booking.com, set rental rates, and collect upfront payments.
Our unique advantage lies in in-house facilities, including a restaurant and laundry service, ensuring a seamless, convenient experience within the framework of apartment ownership laws for secure and convenient investments.
On the unique strategies that set Global Housing and Real Estate Apart
In a time when Sri Lanka is ambitiously aiming to attract 5 million tourists over the next five years, the question of where these visitors will stay looms large. Sri Lanka currently needs more hotel room capacity, which is prohibitively costly for a single entity to bear.
In response, we’ve introduced a unique ownership concept, dividing units from studios to two-bedroom units for tangible ownership. Our focus is on accommodating the growing tourist influx. Facing challenges like the Easter attacks and the Covid-19 pandemic, Colombo’s real estate market leans toward rental over personal residence. Our affordable approach attracts investors, offering substantial returns. Even with a 200% ROI, clients often retain investments due to favourable interest rates and rental income exceeding 20%.
Tailored projects in locations like Negombo, Nuwara Eliya, Sigiriya and Hikkaduwa allow investors to stay in their apartments during visits, fostering a sense of belonging to our ‘Corundum’ brand. Our portfolio includes 500+ hotel residency rooms with communal living and hotel-style environments, adapting to trends post-Covid-19. This caters to remote workers, providing a dynamic living atmosphere, and visitors can travel between our destinations while enjoying their own apartments.
On cultivating long-term relationships with diverse stakeholders and the key elements for earning their trust and credibility
Our approach to building lasting relationships is about adding value to investments while keeping things affordable and exceeding expectations for maximum returns. What makes us stand out is our unwavering, long-term commitment – we’re not just developers but partners holding around 20% ownership in each building, genuinely invested in their success.
Unlike traditional developers, we’re in it for the long haul, actively involved from project inception. Early engagement, securing 40% of pre-sales, is the heart of our partnership, built on affordability, ROI, and flexible repayment terms. Our joint efforts, like co-promoting in Negombo, align our interests, creating a collaborative atmosphere that fosters revenue growth and enhanced services.
Our continuous presence and vested interest mean our clients can trust that we won’t leave them hanging. Tangible benefits, like capital appreciation and rental income, aren’t just ideas but realities supported by solid data and practical experience.
Flexibility is at our core – we want clients to explore their revenue opportunities without restrictions. We understand that each client is unique, compensating based on unit size and features, ensuring fair and personalised revenue distribution.
Our strong relationships aren’t just business transactions; they’re partnerships. Many clients invest in multiple projects because they believe in what we do. And when we showcase tangible properties, it’s not just about the buildings; it’s about showing the heart and soul of our offerings, boosting our conversion rate.
As we expand common facilities from project to project, it’s not just about amenities; it’s about creating a sense of community and trust. Ultimately, our clients appreciate that we’re not just here for the short term – we’re committed to ensuring their investments continue to grow and flourish over time.
Plans for future developments, and how do these align with the evolving demands of the tourism and real estate market in Sri Lanka
We’re strategically responding to the growing tourism landscape with upcoming projects. In Colombo, a significant development of around 300 units, including studios, one-bedroom, two-bedroom units, and penthouses, caters to investment-minded individuals. This aligns with the Port City project and the demand for long-term accommodation driven by professionals engaged in the area.
Furthermore, our upcoming projects extend beyond Colombo to Nuwara Eliya and Kandy. In Nuwara Eliya, we are excited to introduce the Nuwara Eliya Hotel Residency, set to be launched in December 2023. With a starting price of Rs25 million, this residency offers flexible payment plans spanning up to 40 months, tailored to suit your investment needs.
In Kandy, we are exploring a villa concept consisting of approximately 27 villas. These villas are designed for those seeking a spacious and serene living experience, making them particularly appealing to individuals transitioning from apartments and aiming to provide a tranquil retirement setting.
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