Country Club bets big on Sri Lanka

MUMBAI: Taking the acquisition route to expand its network outside India, the Hyderabad-based Country Club India Ltd (CCIL) is all set to make a splash in neighbouring Sri Lanka.

The company is planning to set up five properties in the island-nation in the next three to four years. And to kick-start its expansion plans, CCIL recently signed a memorandum of understanding (MoU) with the Dutch promoter of Babylon Resort Hotels (Pvt) Ltd Mental Dhio to acquire the property located in the city of Kandy, Sri Lanka.

“With the intention of penetrating into the international club and leisure business we have acquired the RCI-affiliated Babylon Resort in Sri Lanka for Rs 5.8 crore. By 2010, we will be adding another four properties to the CCIL portfolio. Acquiring, renovating and refurbishing these properties will entail an investment of Rs 100 crore,” Y Rajeev Reddy, CCIL chairman and managing director, told DNA.

Reddy expects to fund the expansion through a mix of internal accruals and debt funding. “We are in the initial stage of discussions with a select few financial institutions and banks in Sri Lanka,” he confirmed.

Located in Kandy near Colombo, the Babylon property is an all-suite resort featuring 30-suites measuring 800 sq ft each.  With a built-up area of 45,000 sq ft the promoters are also looking at increasing the present inventory by 30 suites.

“This will be done in a phased manner,” informed Reddy. The company has an asset base of Rs 500 crore, comprising a host of properties across the country and a four-star hotel, Amrutha Castle in Hyderabad. It diversified into wildlife and adventure tourism in 2005.

 CCIL currently holds 150,000 members and over one million families under its club brand.