Blue Ocean & Link Engineering continue to ascend with a strong focus on growth and diversification
The Construction & Real Estate sector at present
The construction industry has always been a key player and contributor to the GDP of the nation with nearly 7.1/% in growth. Over a million workers are employed in the construction sector at present. The skies haven’t always been rosy. Dealing with the many hurdles that the war in Ukraine & subsequent fuel, energy and material crisis has thrown at the global economy, the construction and real estate sector too has undergone 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 the scarcity of resources which poses a significant threat to the safety and the wellbeing of their customers and the public in general. But a handful of established players in the market have managed to hold down the fort during the most tumultuous years, understanding what less seasoned players do not – that quality and safety are not things that one can compromise, even at troubled times.
Within the past few months, construction raw material prices have increased by over 200%, reflecting the highly volatile macroeconomic environment. Raw material costs increased significantly due to surging prices in the global market, along with increasing freight rates due to rising oil & gas prices, and high interest for longer credit periods. Due to these continuous cost increases, manufacturers and traders increased the prices of products, including those of building materials throughout the quarter, resulting in a slowdown of ongoing construction projects thereby effectively postponing the commencement of new projects until price stability could be established in the market.
Home loan interest rates has been increasing with its current highest being at 22% and negatively influencing property buying decisions of first-time homebuyers. However with the Central Bank’s (CBSL) decision to float LKR in March 2022 and due to the increasing dollar rate, there has been a rapid increase in demand for completed and on-going condo projects in primary and secondary markets as well as for completed houses as a hedge against economic calamity. Many expats have shown a keen interest in the Sri Lankan real estate market due to the rupee devaluation and increased dollar rates.
In addition to the above, the government had also introduced the golden visa scheme in April 2022, to attract foreign investors, where anyone who invests more than USD 100,000 is granted a 10 year residential visa which is a great approach. However the exemption granted on Value Added Tax (VAT) on residential condominiums shall be removed from the 1st of October 2022. This is expected to drive prices in the future when buying apartments directly from the developers and considering the probability of VAT being imposed in the near future, thus making it a good time for buyers and investors to invest in apartments before VAT comes in to play.
The Blue Ocean Group – The giant strives for growth and diversity
chairman Mr. Sivarajah Thumilan,
The Blue Ocean Group has been known for its commitment to integrity, quality, discipline, flexibility, safety, and service throughout recent years. Under the leadership of its chairman Mr. Sivarajah Thumilan, the Group had already foreseen the challenges that were to come and had set a clear strategic path, supported by professionally qualified and experienced corporate planners.
It is due to the dexterity of its strategic leadership that the Blue Ocean Group has been able to continue its policy of offering quality apartments at reasonable prices across strategic locations to the general public and to foreign investors, with relative ease. The Group’s priority is executing their already strong order book which has been predicted to drive attractive cash generation and returns in the years to come while providing the group a strong foundation to stand on, amidst volatilities.
The Blue Ocean Group continues to work on its existing high-rise projects in Colombo, Mount Lavinia & Nuwara Eliya and will commence work on a new state of the art high rise projects in De Seram Road, Mount Lavinia, and in Havelock Place, Colombo 05. This will further establish their place in the construction industry like real estate trailblazers.
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 cemented itself as a leading player in the construction industry. Link Engineering has recorded a significant growth across all construction and engineering operations, particularly contributing to the government infrastructure development. The company is currently involved in a large number of construction projects that range from local and Indian government funded constructions such as universities and infrastructure projects to urban luxury condominiums. As a member of the Blue Ocean Group, Link Engineering has already provided a sound financial plan for 2022 and 2023 with many condominium and government constructions in Jaffna, Trincomalee, Kandy, Gampaha, Colombo, Nuwara Eliya etc.
Over the last decade, government funded projects have taken a prominent role in the construction industry and Link Engineering had successfully claimed its share in this segment. The company had recently completed the Faculty of Engineering Technology and Bio System Technology building of University of Jaffna, Ariviyal Nayar, Kilinochchi and had its grand opening ceremony on the 18th of August 2022 with Hon. Ministers and other distinguished guests. This is the largest building of the university, distinguished by its excellent craftsmanship and elegant finishes that come with a number of state of the art amenities and facilities, carefully crafted at the apt hands of Link Engineering experts.
The Company also handed over the customer care centre belonging to the Ministry of Water Supply National Water Supply & Drainage Board in early January this year. It is also now ready to hand over the Pellakelle Dancing School building in Kandy, a high Impact Community Development Project (HICDP) that entails construction of a training school building, multi-purpose hall and the supply of furniture, office equipment, musical instruments, and other equipment. This project is yet another manifestation of the continued commitment of the Government of India to enhance the strong religious and cultural links that bind the people of Sri Lanka and India. Link Engineering will also be handing over the eight storied building for the Clinical Department, Faculty of Medicine of University of Jaffna. This is the tallest building in the Jaffna town and valued at approximately LKR 800 million.
Aiming for excellence
The Group’s dedication to build, maintain, protect and enhance their reputation as the most ethical, efficient, and trusted company among their employees, clients, customers, supply chain partners, investors, and the community at large has safeguarded their position in the market as pioneers and in the industry, while their robust approach to corporate responsibility, has ensured delivery of the highest quality within budget. Their foundation is a sturdy one built over many years of loyalty, trust and steadfastness which helps them stand tall despite the uncertainty of the recent times.
Implementing and using environment friendly material and constant market monitoring for the most cost effective solutions to meet and exceed customer expectations, the Group dedicates its resources to ensure high quality of product and service delivery through constant monitoring in order to deliver a high quality, consistent customer experience.
