Link investor

Blue Ocean & Link Engineering continue their ascent with a focus on growth and diversification

The construction and real estate sector today

The construction industry has always been a key player and contributor to the nation’s GDP with nearly 7.1% growth. More than one million workers are currently employed in the construction sector. The sky hasn’t always been rosy. Faced with the many obstacles that the war in Ukraine and the subsequent fuel, energy and materials crisis have thrown on the global economy, the construction and real estate sector has also experienced stifling challenges that have caused many smaller players to drop out of the game. Many others have developed a high-risk “hit and run” approach with their projects due to resource scarcity which poses a significant threat to safety and well-being of their customers and the general public. But a handful of established players in the market have managed to hold the fort through the most tumultuous years, understanding what less experienced players don’t understand – that quality and safety are not things you can do over. compromises, even in times of trouble.

Over the past few months, prices for construction raw materials have increased by more than 200%, reflecting a very volatile macroeconomic environment. Raw material costs have increased significantly due to soaring prices in the world market, as well as increased freight rates due to rising oil and gas prices and high interest for credit periods longer. As a result of these continued cost increases, manufacturers and traders raised prices for products, including building materials, throughout the quarter, resulting in a slowdown in ongoing construction projects, thus postponing the launching new projects until price stability can be established in the market. .

Home loan interest rates have risen to a current high of 22%, negatively impacting first-time homebuyers’ property buying decisions. However, with the decision of the Central Bank (CBSL) to launch LKR in March 2022 and due to the increase in the dollar rate, there has been a rapid increase in demand for completed and ongoing condo projects on the primary and secondary markets as well as for completed houses. as a protection against economic calamities. Many expatriates have shown keen interest in the Sri Lankan property market due to the devaluation of the rupee and rising dollar rates.

In addition to the above, the government also introduced the golden visa program in April 2022, to attract foreign investors, where anyone who invests more than USD 100,000 is granted a 10-year residency visa, which is a great approach. However, the exemption granted to Value Added Tax (VAT) on residential condominiums will be abolished from 1 October 2022. This should drive up prices in the future when buying apartments directly from companies. developers and given the likelihood of VAT being imposed in the near future, making this a good time for buyers and investors to invest in apartments before VAT kicks in.

The Blue Ocean Group – The giant aspires to growth and diversity

The Blue Ocean Group is known for its commitment to integrity, quality, discipline, flexibility, security and service over the past years. Under the leadership of its Chairman Mr. Sivarajah Thumilan, the Group had already foreseen the challenges ahead and had set out a clear strategic path, supported by professionally qualified and experienced business planners.

It is thanks to the dexterity of its strategic leadership that the Blue Ocean Group has been able to pursue its policy of offering quality apartments at reasonable prices in strategic locations to the general public and foreign investors, with relative ease. The group’s priority is to execute on its already strong order book, which should generate cash generation and attractive returns in the years to come while providing the group with a solid foundation on which to stand, amid the volatilities.

Blue Ocean Group continues to work on its existing high-rise projects in Colombo, Mount Lavinia and Nuwara Eliya and will begin work on new state-of-the-art high-rise projects at De Seram Road, Mount Lavinia and Havelock Place. , Colombo 05. This will further establish their place in the construction industry as real estate pioneers.

Link Engineering the construction legend

With over 40 years of experience under its belt, Link Engineering (Pvt) Ltd, the construction arm and proud member of the Blue Ocean Group of Companies, has established itself as a leading player in the construction industry. construction. Link Engineering recorded significant growth in all construction and engineering operations, notably contributing to the development of government infrastructure. The company is currently involved in a large number of construction projects ranging from local and Indian government funded constructions such as universities and infrastructure projects to luxury urban condominiums. As a member of Blue Ocean Group, Link Engineering has already provided a strong financial plan for 2022 and 2023 with numerous condominium and government constructions in Jaffna, Trincomalee, Kandy, Gampaha, Colombo, Nuwara Eliya, etc.

Over the past decade, government funded projects have played a prominent role in the construction industry and Link Engineering has successfully claimed its share in this segment. The company had recently completed the building of the Faculty of Biological Systems Engineering and Technology at Jaffna University, Ariviyal Nayar, Kilinochchi and held its grand opening ceremony on August 18, 2022 with the hon. Ministers and other distinguished guests. It is the largest building in the university, which is distinguished by its excellent craftsmanship and elegant finishes which are accompanied by a number of state-of-the-art equipment and facilities, carefully designed by the experts. from Link Engineering.

The Company also handed over the customer service center belonging to the Ministry of Water Supply to the National Water Supply and Drainage Board in early January this year. It is also now ready to deliver the Pellakelle School of Dance building in Kandy, a High Impact Community Development Project (HICDP) which includes the construction of a training school building, a multi-purpose hall and the supply of furniture, office equipment, musical instruments, and other equipment. This project is another manifestation of the Government of India’s continued commitment to strengthening the strong religious and cultural ties that unite the peoples of Sri Lanka and India. Link Engineering will also hand over the eight-storey building to the Clinical Department of Jaffna University Medical School. It is the tallest building in Jaffna city and it is valued at around LKR 800 million.

Aim for excellence

The Group’s commitment to build, maintain, protect and enhance its reputation as the most ethical, efficient and trusted company among its employees, customers, supply chain partners, investors and community as a whole has preserved its position in the market as pioneers and in the industry, while their strong approach to corporate responsibility, has ensured the highest quality delivery within budget. Their foundation is solid, built on many years of loyalty, trust and consistency, which helps them to stay on their feet despite the uncertainty of recent times.

By implementing and using environmentally friendly materials and constant market monitoring to find the most cost-effective solutions to meet and exceed customer expectations, the Group devotes its resources to ensuring high quality delivery. of products and services through constant monitoring to provide a high quality and consistent customer. live.