LRI Leads Rs. 4 Bn Acquisition of Lee Hedges PLC 📈

Lanka Realty Investments PLC (LRI) has announced a strategic acquisition of a 51% controlling stake in Lee Hedges PLC for approximately Rs. 4.0 Bn. The transaction marks a pivot from passive land holding to a yield-focused commercial real estate strategy. • Transaction Details: LRI acquired 13.06 Mn shares at Rs. 216 per share. This follows the successful monetization of non-core assets, including the sale of the Baseline Holdings land. • Financial Position: As of Q2 2026, Lee Hedges holds ~Rs. 1.76 Bn in cash and near-cash resources. The Group plans to use this liquidity to reduce interest-bearing liabilities and strengthen consolidated cash flows. • Strategic Impact: The move integrates high-quality, income-generating assets like Project 353 (Colombo 3) into LRI’s portfolio, enhancing recurring income and long-term financial resilience. • Operational Highlights: Existing assets like Unity Plaza are already showing improved yields; a recently launched large-scale LED facade at the site has introduced a new high-margin advertising revenue stream. The management expects the Group to operate on a cash-flow positive footing while optimizing asset yields through active management and strategic balance sheet de-leveraging.