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Sri Lanka Hotel Reefcomber in deal to build resort

Dec 28, 2010 (LBO) - Sri Lanka's Hotel Reefcomber has struck a deal to build a four-star beach resort with water-front villas, a stock exchange filing said.
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Hotel Reefcomber has finalised the purchase of land called 'Santhoduwa' at Santhoduwa village in Akkaraipatu within the secretariat division and pradeshiya sabha (local council) limits of Kalpitiya, it said.

The land was in three blocks of 12 acres, 25 acres and five acres.

The CSE filing said Hotel Reefcomber has also entered into a lease agreement with Asia Sports Management to lease 35 acres of the land for 99 years for a total lease rental of 55 million rupees.

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The company aims to build a four-star resort with 150 rooms and 28 villas facing a 50-metre width waterway that cuts across he land and connects to the sea, it said.
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The villas which will have individual pontoons giving access to the sea are to be leased out on 99-year leases to high-net-worth individuals, it said.

The company will operate the villas as part of the hotel with the lessees' concurrence, managing and marketing them accordingly, the statement said.

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Updated with subsequent clarification in second s

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