Shamitha Ganegoda, after being a Financial Controller in some leading Australian property development companies, started his own property development company, EliSh Developments, after developing a passion for turning bare plots of land into multistoreyed structures that supported modern living.
After residing in Australia for over 18 years, Ganegoda ventured into Sri Lanka’s condominium market in 2015 with a vision: to provide affordable yet luxurious, aesthetically appealing yet practical, housing solutions for an emerging class of young business executives and professionals. But that was not all. Ganegoda proposed to concentrate his projects not in the suburbs, but within Colombo where housing is already too expensive and beyond reach to many.
Foundations for the first building, The Flemington Rajagiriya, were laid in 2016. Three years later, all 30 units are sold out. A second project of 18 units, The Flemington 1o3 Campbell, in Colombo 10, is nearing completion with pre-sales reaching 90%. The company has commenced work on the third property down Vajira Road, Bambalapitiya, which will have 45 apartment units and Ganegoda is upbeat about the company’s prospects despite the post-COVID challenges ahead for the economy.
“Our approach to business and our growth strategy helped us come out of the COVID-19 lockdown better than most in the industry. In fact, we emerged financially stronger,” Ganegoda says.
Can you give us a brief background about EliSh Development, and what makes the company successful in property markets here and in Australia?
Ganegoda: I had worked as a financial controller for a few property development companies in Australia for several years. I was always intrigued by how a bare plot of land transformed into a structure that supported modern living. That stoked my passion for residential property development, which was why I started my own company, EliSh Development, in 2008.
After two successful projects in Melbourne, I followed my passion and moved to Sri Lanka in 2015. We have two multi-storey condominium projects here under The Flemington umbrella consisting of affordable, convenient, luxurious, and spacious apartments for the modern family. Few things matter when it comes to selling housing properties: location, design, and price, getting this balance right is critical. No property development can be successful without a great location, so we ensure we get this right for all our projects in Melbourne and Sri Lanka.
Getting the design right is the next big factor. We build practical living spaces that have appeal, provide convenience, security, and luxury. These matter to people. Affordability is another important factor. The ingredient that holds everything firmly in place is the trust clients have in us. Integrity and ethical business practices have been entrenched deep within the Australian business culture which we follow.
We have hit the right balance with location, design and price allowing us to achieve tremendous success within four years. Our first project in Rajagiriya is fully completed, 100% sold-out and 85% occupied. The second property at Colombo 10, The Flemington 103 Campbell, is nearly complete and pre-sales have reached 90%, and this was around 50% before the foundations were fully laid! We recently started on the third building located on a prime piece of land in Vajira Road, Bambalapitiya.
Can you discuss the role of innovation in your company, and new concepts shaping modern living spaces?
Ganegoda: We are big on innovation. To start with, we engage only the top architects, engineers, and contractors at the pinnacle of their respective professions. The expertise they bring to our projects matters. For instance, an architect can bring the best contemporary designs that appeal to buyers’ aesthetic and practical senses and their lifestyle choices. Reputed engineers are important because I want my buildings to stand the tests of time. Apartment buildings in Melbourne and Sydney continue to stand for well over a century, and that is what I want to build here, buildings that last.
I am not building boxes for people to live in, that’s why innovation is so important. Melbourne has progressed the most compared to other Australian states in the last decade, with several developments showcasing fascinating architectural trends in modern living. Even Colombo has a few good examples. We have learnt that while the location is key, meeting customer requirements is equally important.
The Flemington is challenging the clichés, and even the boringness, associated with modern living, and pushing the boundaries to unlock new possibilities. One of the concepts we brought from Australia is the convenience of living. When I returned to Sri Lanka, I discovered many inconveniences even at prominent residential locations.
We removed these incumbrances with The Flemington Rajagiriya. We will continue to make living spaces as practical as possible with every project we take on. To keep condominiums affordable, we use many modern construction practises which are efficient yet cost effective. The Flemington targets the midrange property market comprising young professionals and business executives who live in the suburbs.
They commute several hours each day taking kids to school before heading for work in Colombo. Returning home likewise takes hours because of the rush-hour traffic congestion for an otherwise 20-minute drive. Finding a solution to this problem was one of our core objectives. The Flemington properties in Rajagiriya, Colombo 10, and the new one in Vajira road are all located where they are because we wanted to offer the mid-range market the luxury of a short commute so people can spend more productive time at work and home.
We estimate a four-hour time saving, and plenty of fuel too. And when they need a long vacation, they will not have nagging doubts about unlocked doors or windows, their homes will be safe. Security and convenience are often-overlooked benefits of living in an apartment. You only need to lock one door before going away for a long weekend.
What is your outlook for Sri Lanka’s condominium market post-COVID, and can you give us insights into your expansion strategy?
Ganegoda: We have plans to expand The Flemington brand but our approach to each project, and the attention to detail we demand of ourselves allows us to focus on one or two projects at a time. We take pride in this. It further allows us to safeguard the financial stability of the company and ensure that our clients and investors get adequate returns. As I said before, our Colombo 10 property is nearing completion and the next one which really excites us at Vajira Road is underway.
Our growth strategy helped us come out of the COVID-19 lockdown better than most in the industry. In fact, we emerged financially stronger and embarked on our third project. The timings of our projects were such that during the lockdown, we only suffered work-stoppages for maybe two to three weeks because construction crews could not reach the site. There were supply-side issues and delays in obtaining various approvals because government offices were not fully functional during the early stages after the lockdown.
The company and our clients were fortunate not to face any mortgage issues. We need not depend on moratoriums and other concessions from banks. Coming out of COVID lockdowns, we doubled our staff due to the growth we experienced. The lockdowns were less stressful on people occupying our apartments because they were able to enjoy the common areas like the pool and gym while ensuring that social distancing was maintained.
We personally made sure our residents had access to all the necessary essentials. The mid-range market will continue to enjoy demand because housing is a basic essential and there is an emerging class of young professionals looking for affordable housing with a touch of luxury and conveniences that best suit their lifestyles. We recorded more sales since the lockdown was lifted than before COVID-19. Sales doubled in June and July compared to the first three months of 2020.
Property market growth will come from the mid-range and there is a good reason for this. Sri Lanka’s economy will be driven by a growing population of middle-level executives and professionals in the private and public sectors from across several industries including financial services, healthcare and more. More people are becoming professionally qualified than ever before. Also, access to housing finance has improved for many young professionals and raising a mortgage is not complicated. Supporting this shift, we have four banking partners, namely – Hatton National Bank, Sampath Bank, National Development Bank and Nations Trust Bank. We increasingly see young people showing interest in the property market.
The Flemington properties are well-positioned to benefit from this trend not only in terms of prime locations but also by way of attractive pricing and amenities. Our Vajira Road apartments will have a starting price tag of Rs27.3 million for a two-bedroom unit with air conditioning, central gas and access to a swimming pool and gym.
You will not find new apartments at this price anywhere in this part of Colombo. A house in Colombo is out of reach for many. Although land prices have fallen because of COVID-19 and the economic slump, and while people are investing in property, few give much thought to the investment and effort needed to build a house. Which is why I believe apartments will be a more attractive solution for Sri Lanka’s emerging middle class.