Singapore-listed Sim Leisure Group is taking its brand of theme parks to Sri Lanka, promising fun, environmentally friendly, and economically viable theme parks. CEO Sim Choo Kheng of Penang-based Sim Leisure with Dr Parakrama Dissanayake, Chairman of Elpitiya Plantations PLC, at the MOU signing. Photo: CompanyFor that, Sim Leisure -- whose claim to fame is a 1,111-metre long sliding tube that has been officially recognised as the world's longest by Guinness World Records -- has signed a memorandum of understanding (“MOU”) with Sri Lankan listed Elpitiya Plantations PLC.Elpitiya Plantations PLC is an associated company of Sri Lankan-listed blue chip conglomerate Aitken Spence PLC. Under the non-binding MOU, Elpitiya will sublease land for the project while Sim Leisure will develop and operate theme parks under its ESCAPE brand. |
Sim Leisure's theme park in Penang. Photo: Company(see also: SIM LEISURE: Creating ESCAPE Challenge in Petaling Jaya mall, and beyond)
Having been granted preliminary approval to commence construction, Penang-based Sim Leisure aims to commence construction of ESCAPE Sri Lanka in March 2020.
Phase 1 is expected to take about a year to complete.
Both parties also expect to sign a definitive agreement in relation to ESCAPE Sri Lanka later this month, which includes the entry of a strategic joint venture partnership whereby Sim Leisure and Elpitiya (or its nominee) are the proposed joint venture partners of Venture Valley.
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Sim Leisure stock price |
22 c |
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52-week range |
15 – 23 c |
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Market cap |
S$29.5 m |
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PE (ttm) |
11.7x |
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Dividend yield |
-- |
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Year-to-date |
-- |
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Shares outstanding |
134 m |
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Source: Bloomberg |
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Elpitiya has incorporated a special purpose company, Venture Valley Private Limited.
Elpitiya intends to sublease a piece of land to develop and operate ESCAPE Sri Lanka.
ESCAPE Sri Lanka will be located halfway between Colombo city and the main beach resort of Galle (a city on the Southwest coast of Sri Lanka) against the backdrop of a booming tourist industry.
Sri Lanka's Tourism Ministry is aiming to attract four million tourists in 2020 and revenue of five billion U.S. dollars from the industry to spearhead an overall economic revival of the country.
This will amount to doubling the arrivals, as the island-nation had received 1.91 million tourists in 2019.
 Mr Sim Choo Kheng (photo), CEO of Sim Leisure, said, “I see tremendous opportunity in the Sri Lankan market with its population of over 20 million. Sri Lanka is one of few countries which is unspoilt and green. The country’s unpolluted coastline and beaches bring tourists from all over the world and its tourism industry is growing at an incredible pace. "Furthermore, the cost of doing business in Sri Lanka is relatively low. We will have the first-mover advantage of building the first world-class attraction in Sri Lanka. Unlike many parts of East Asia, Sri Lanka has tremendous untapped potential for family leisure and a highly-educated population hungry for success. "We see this as a great opportunity to train the local population in our operations for future global expansion. We will be generating smiles per hour never seen before in Sri Lanka.” |
Comments
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