Strong French connection in Krrish Square development

Shirajiv Sirimanne
The Krrish Group would invest US$ 650 million to build three towers and redevelop the adjoining Transworks building in Fort. The construction would start in August and be completed in 30 months.

R P Gupta speaking to Daily News Business said that they would also settle the balance payment due for the land by the end of July. “We have already paid Rs 41.1billion which is 85% of the total commitment.

The balance Rs 800 million would be paid before the deadline,’ he assured. He said that the support they received from the government was overwhelming. He said that when completed this would be the tallest building in the region and the biggest single private sector development. Each tower would comprise 95 floors and both towers would be joined by two bridges, one of which would be used as the lobby of the 200 room hotel. “We would look at a hotel chain to manage this hotel,” he said. The architect, Edoward Francois, who is a celebrity in Europe said that some of the hotel rooms would have private swimming pools and would also have 600 apartments, office space, restaurants, retail outlets, cinema and parking for 3,000 vehicles.

He said the land in the heart of the city makes their designing easier. He said that they would also want to have touch of nature and greenery to the property and would create a mini tea estate in the complex.

“Another beauty would be the colonial transworks building which would be restored as the entrance. This would be a major attraction.”

He also spelled out plans to make the Krrish tower development with 95 floors as the tallest building in South Asia and the tenth biggest development in the world.

Having designed, Marina Sands Properties in Paris, Abu Dabhi, and several other historic ventures in the world he said that Krrish tower would also be the first property that would offer two inter linking bridges in the region.

CEO R P Guptha said that with the European architects new French design and style and global retailers some of whom would be entering the region for the first time, would make Krrish Transworks Colombo a new and much sought after destination in the world. “People would be rushing to seek accommodation here,” he predicted. He said that Sri Lankan air links were very good and visitors could also shop in Krrish and take a transfer to any other destination.

In addition to foreign visitors, they also expect Sri Lankan public who have a high per capita income and like to indulge in luxury to patronise this. He said the concept to build Krrish in Colombo came up around two years ago and peace, investor friendly climate, Sri Lanka’s growing reputation as a high end destination and the support they received from the government made them go ahead with the project.

Renaud Dutreil, Chairman of LVMH Moet Hennessy Louis Vuitton Inc, a graduate of the Institute des Etudes Poltitiques de Paris, Ecole Normale Superieure (ENS) and Ecole Nationale d’Administration (ENA) in Paris, would also assist in the designing of the colonial property.

Dutreil served in the highest offices of the French government for over 15 years prior to him joining LVMH.

His ministerial appointments include Minister of Small and Medium-sized Businesses, Commerce, Crafts and Liberal Professions (2005-2007), Minister of the Civil Service and State Reform (2004-2005) and Secretary of State for Small and Medium-sized Businesses, Commerce, Crafts and Liberal Professions (2002-2004). He was a Member of Parliament from 1994-2008.

“The colonial property would be redeveloped as one of the most iconic building in Asia,”he said.

Edouard Francois has taught in many schools around the world, including the Architectural Association in London, the Ecole Speciale d’Architecture in Paris and the Design Academy in Eindhoven. His work can be found in the permanent collections of the Pompidou Centre and the FRAC Centre, and has been regularly exhibited internationally, including at the Canadian Centre for Architecture in Montreal, the Guggenheim Museum in New York, the Victoria and Albert Museum in London and the Venice Architecture Biennale.
http://www.dailynews.lk/2013/06/17/bus01.asp

Cushman and Wakefield Inc, USA which is a annual US$ one billion company with over 10,000 employees have been appointed to market Krrish towers retail outlets.

M S Kazuko Morgan, Executive Vice Chairman who was in Colombo last week said that they have spoken to many global retailers who have responded very positively. Cushman and Wakefield is the world's largest privately held commercial real estate services firm. The company advises and represents clients in all aspects of property occupancy and investment and has established a permanent position in the world's major markets, as evident by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917 it has 235 offices in 60 countries and more than 14,000 employees.

The firm has more than $5.5 billion in assets under management through its wholly-owned subsidiary Cushman and Wakefield Investors.

Morgan said, "We have may new famed global retail companies who wish to set up shops in the proposed Krrish towers." There also would be space for 80 shops for offer.

She said the rapid development taking place in Sri Lanka has been praiseworthy and had helped them attract these retailers. "We will make Colombo the most sought after stopping destination in the world," she added.
http://www.dailynews.lk/2013/06/17/bus05.asp

The French connection in Sri Lanka’s urban landscape is getting stronger by the day with the entry of two top French experts into Colombo’s mega Krrish real estate development.

While Renaud Dutreil, global investment consultant and a former Commerce Minister, and experienced architect Edouard Francois, were in Sri Lanka this week in connection with the project just across the road from the Colombo Hilton, the Ceylon Chamber of Commerce (CCC) was preparing for a French delegation and a July 4 symposium on “French Expertise in Urban Development’.

Both French experts are partners in the Indian-based Krrish group project which has had its share of issues relating to making the full investment to the Sri Lankan Government.(see page 1 )

Mr. Dutreil, in a wide ranging interview with the Business Times on June 15, said the Krrish Square is unique and unlike any other real estate project (in the world).

Passionate about heritage and culture, he said in France a lot of value is placed on the past. “We don’t want to destroy what we have created in the past. We protect our past … we have a long, long culture of preservation and respect for the past.”

The former Minister is a one-time chairman of Louis Vuitton Moët Hennessy (LVMH), the well-known lifestyle brand, and now runs his own consultancy

He stresses the need for oganised and planned development which means ensuring culture, nature, lifestyle, social harmony, equality, and education are all taken on board in the development path.

He believes Sri Lanka is at the right stage of development and could learn from lessons from the past of countries that had tremendous growth like Malaysia or Singapore.

Mr Dutreil discussed the development model of 15-20 years ago where emerging cities were identical with similar buildings, similar towers, similar malls, similar offices and landscaping.

“Now it’s green development and Sri Lanka is at the right moment to be a leader in Asia in this development path,” he said.

“Sri Lanka needs to be different … create a modern city with a Sri Lankan touch.”

The Krrish Transworks upmarket mall would have about 80-100 global lifestyle brands being retailed. Krrish Square would have three towers of 95 floors, 600 apartments, two bridges and 200 hotel rooms.

The 53 year-old former politician is passionate about politics, business, culture, environment and a whole range of issues. Settling down for a ‘conversation’ at Krrish’s project office on the 35th floor of the World Trade Centre, Mr Dutriel is asked by the Business Times what he felt as to whether technology was helping humankind or was there an overload of information.

“Compare technology with food,” he says getting into a long response on what he calls is ‘information obesity’.

“Today some people have too much food which leads to obesity. Information is like food; something that feeds us. If we cannot control the information we get, we are going to have information obesity … too much information, rather than quality information (like quality food).”

He said education in schools should be structured in such a way that students are able to select the information that is meaningful to them, just like looking at a food menu and making a selection.

“Information is all over; the world is feeding you information even against your will – advertising, media – you are in the river (of information and cannot resist the flow. You need to select from the menu of information rather than ‘eat’ everything that is presented to you,” he said.

Mr. Dutreil, who has served in various Government positions and as a minister during 15 years of a political career, says he finds his new life as a businessman far more tangible and satisfying than as a politician.

On the European financial crisis, he blames the political leadership for the plight that Europe is in today.

“The crisis in Europe is due to bad political management and that risk and uncertainty is creating problems for the rest of the world. European leaders are (simply) unable to fix the problems … they are selfish that they do not realize the risks,” he said.

Meanwhile the July 4 symposium is organized by the Sri Lanka France Business Council of the CCC in association with the French Embassy in Colombo. It provides an opportunity for local companies and implementing agencies engaged in urban and infrastructure development to meet with powerful French companies and share French knowhow in different aspects of urban development.

France, the chamber said, is a forerunner in innovative urban development and built environment creation with long established technological dominance in large scale infrastructure projects.

Ten major French companies are in the delegation. They are Alstom Transport – a global leader in high speed trains and urban transport; Credit Agricole CIB, corporate and investment banking arm of the Crédit Agricole group; DTP Terrassement, an earth-moving expert; Degremont, a water treatment plant specialist; Egis Group, involved in consulting engineering works; Ellipse Projects, an engineering and project management company; Signes-Paysage, a French urban design company; Unibridge, involved in pre-designed and prefabricated modular steel bridge systems; Veolia Water, leader in water and wastewater services; and Vinci Construction Grands Projects, involved in the concessions and construction industry.

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Krrish Sq. could lose strategic development project status
By Bandula Sirimanna

The multi-million dollar Krrish Transworks project could lose a 12-year tax holiday and other concessions if it fails to pay the balance 16 per cent or US$104 million due to the state as lease rental before July 15, Investment Promotion Minister Lakshman Yapa Abeywardana said.
He said these concessions won’t be granted until the balance due is settled by the deadline.

A 12 per cent interest has also been slapped on previously delayed payments as the company had agreed to make the full payment by January15, he revealed.

He asserted that he will not take seek parliamentary approval for the project if the investor fails to fulfill its financial obligations by the due date, as he cannot answer opposition queries. The project can be continued without strategic development status.

Parliamentary approval is necessary for tax and other concessions for any project investing more than $250 million under the Strategic Investment Act.

A top official of the company said construction work would start in August and completed in 30 months.

The company has already paid Rs 41.1billion (about $318 million) or 85 per cent of the total financial commitment and the balance must be paid by July 15 for the company to qualify for these special concessions, he added.
http://www.sundaytimes.lk/130623/business-times/strong-french-connection-in-krrish-square-development-49519.html