Softlogic Plc

completed

SLH is a diversified conglomerate which started operations in 1991 as an information and communication technology (ICT) company and has since expanded into healthcare, retail, leisure/ tourism and financial services. SLH is listed on Colombo Stock Exchange. Under its healthcare business, SLH owns the largest private hospital network in Sri Lanka with five hospitals and 12 diagnostic laboratories supported by 350 collection centers. IFC has an investment in SLH’s hospital business (Project #28555 disclosed in February, 2010: http://www.ifc.org/ifcext/spiwebsite1.nsf/0/B9F14C11EE96B7E2852576CD00604BF5). SLH’s retail business primarily focuses on consumer electronics with some share from branded apparel, furniture and automobile dealerships. SLH has a travel agency and is now diversifying into tourism business by building hotels. The proposed project involves an investment over the next two to three years to (a) expand its network of retail stores from about 124 to up to 280 as well as increase its geographical reach to smaller cities by 2015; and (b) rebuild and expand an acquired beach hotel to a total of 166 keys in Bentota, 60 km south of Colombo (the ‘Project’). This will be implemented through subsidiaries of SLH.The retail business expansion will involve opening of new stores – primarily for consumer electronics and a few for branded textiles and apparels – in urban commercial areas. Almost all the existing as well as proposed stores will be built in leased or rented premises, with average area varying from 750-1,000 square feet (sqft). The layout and design of the stores is governed by the specifications of the respective brand (e.g. Nokia, Samsung, Panasonic, NEC, Levi’s, Nike, Giordano, Mango etc.). For its leisure/tourism project, SLH has purchased Hotel Ceysands in Bentota as its first acquisition. This property was a part of Bentota National Holiday Resort (NHR) developed by Sri Lanka Tourism Development Authority (SLTDA) in 1969. NHR is spread over 100 acres with a long beach front, and comprises of about 600 guest rooms of various star categories in five hotels. SLTDA manages NHR and provides the supporting infrastructure – including a central wastewater treatment plant - for this entire resort complex.After refurbishment the Company plans to upgrade the existing hotel into a 4-star plus rated resort on par with international standards. The Company has signed a management agreement with a well known hotel and resorts management group, Centara Hotels and Resorts (“Centara”) from Thailand.