Q: Blue Star Realties successfully completed the Capital Heights apartment complex in Rajagiriya and all spaces have been sold out. Tell us about the project and its completion.

A: Capital Heights – a unique real estate development project comprising 242 luxurious, high-rise apartments on G+39 floors – is a venture by Blue Star Realties, a group member of Access Engineering. With its unique curvilinear layout and shape, Capital Heights is the most desired collection of modern apartment homes due to its prime location, superior construction and trendy design.

What differentiates Capital Heights from the rest is the value that has been implemented into every aspect – from its premium location to the finest quality products and world-renowned brands, as well as the distinguished expertise behind its construction and design.

Capital Heights, built for an elevated lifestyle of luxury, convenience and gracious living, presents potential owners with the best of both worlds by way of the perfect home and investment.

Despite facing unforeseen challenges including the Easter Sunday attacks in 2019 and global COVID-19 pandemic, this project was successfully completed and delivered with 100 percent unit sales. Although we weren’t able to finish the project according to the initial plan due to external factors, we navigated the circumstances and didn’t face any additional delays.

Q: How did the completion reflect the strategies and management approaches you employed to ensure delivery and 100 percent unit sales?

A: We implemented proactive strategies amid unexpected challenges. These included robust risk management with the development of contingency plans and consistent communication to manage stakeholder expectations. We employed value engineering, efficient procurement management, strategic human resource practices, and adaptive project management to maintain momentum and adhere to budgetary constraints.

Our collaborative approach with contractors was pivotal, fostering a partnership mentality by embracing their challenges as our own. This strengthened relationships and enhanced overall project efficiency. Additionally, the outstanding on-site construction team and sales team played crucial roles.

The construction team’s diligence and transparency in monitoring every project aspect ensured the adherence to quality standards. Simultaneously, the sales team’s targeted efforts and customer-centric approach resulted in accomplishing 100 percent unit sales.

Furthermore, our commitment to disciplined on time board meetings and adherence to guidance from the chairman provided a cohesive framework for decision making, conflict resolution and strategy alignment.

Q: What are some challenges you faced during construction – and how did you overcome them?

A: During the construction process, we encountered several formidable challenges that demanded innovative solutions and adaptability.

The first hurdle was the aftermath of the Easter attacks – the security concerns and heightened state of alert created logistical challenges in transporting construction materials and coordinating site activities. As a solution, we collaborated with local authorities, implementing enhanced security measures and adapting our construction schedule to align with security protocols.

Subsequently, the pandemic disrupted supply chains, delayed shipments and necessitated stringent safety measures on-site. To counter these challenges, we implemented rigorous health and safety protocols, diversified our suppliers and adjusted project timelines to account for potential delays. This approach enabled us to maintain a safe working environment while minimising the impact on project timelines.

Import restrictions further complicated the procurement of essential materials. We mitigated this by establishing strong relationships with local suppliers, exploring alternative sourcing options and optimising material usage through efficient project management.

Another factor is the changing landscape of governance rules. We proactively engaged with relevant authorities, staying abreast of regulatory changes and adapting construction plans accordingly. This involved regular communication with government officials, legal advisors and stakeholders, to ensure compliance and avoid potential project disruptions.

The depreciation of the Sri Lankan Rupee against the US Dollar affected project costs and financial planning. To manage this, we adopted a robust financial strategy including hedging mechanisms and periodic reassessment of budget allocations. This allowed us to navigate currency fluctuations and maintain financial stability throughout the project.

And the lengthy approval procedures in Sri Lanka presented another hurdle. To streamline this process, we engaged in continuous communication with regulatory bodies, seeking pre-approvals wherever possible. Additionally, we leveraged technology to expedite documentation and approval processes, reducing administrative bottlenecks.

Q: In what ways have negotiation strategies been instrumental in securing advantageous deals and fostering strategic partnerships for Blue Star Realties?

A: Navigating negotiations with contractors and material suppliers for Capital Heights demanded a meticulous approach. Prior to negotiations, a research effort was invested in understanding project requirements, technical specifications and budget constraints. This paved the way for highly informed and productive discussions.

Detailed project requirements with specific technical specifications, quality standards and delivery schedules were communicated with precision to contractors and suppliers. This minimised potential misunderstandings and ensured a shared vision for the project’s success.

Thorough research on market prices for materials and labour costs empowered us to engage in negotiations armed with current and relevant data. This practice ensured that the deals struck were competitive and advantageous for Blue Star Realties. The negotiation strategy involved a thorough evaluation of potential contractors’ capabilities and track records.

Throughout negotiations, transparent communication regarding budget constraints and financial priorities was a constant. This approach facilitated the customisation of proposals to align with our financial considerations, fostering a partnership built on mutual understanding and shared objectives.

Q: Are there unique features or aspects of Capital Heights that enhance its investment potential in the real estate market?

A: Capital Heights boasts unique features that enhance its investment potential in the real estate market. The property positions itself as a high-end residential option, appealing to discerning buyers and investors. The association with luxury and prestige contributes to its perceived value in the market.

Capital Heights benefits from a strategic and prime location, offering proximity to key amenities, business districts, educational institutions and recreational facilities. This prime location significantly increases the property’s appeal and investment attractiveness.

The complex stands out in terms of durability and aesthetics. High quality materials and superior craftsmanship enhance the overall value of the property, reducing the need for extensive maintenance and making it an attractive investment for the long term.

It also boasts unique amenities and facilities, such as state-of-the-art fitness centres, swimming pools, concierge services and exclusive common areas. These features add to the overall lifestyle appeal, making the property stand out in the market.

Scenic views and distinctive architectural design further enhance the investment potential of Capital Heights. Energy efficient systems, green spaces and eco-friendly construction practices contribute positively to the property’s investment potential as well.

Q: What sustainable or eco-friendly features have been integrated into the design and construction of Capital Heights?

A: Capital Heights definitely demonstrates a commitment to environmental responsibility. The overall building design prioritises natural lighting, ventilation and thermal comfort. Emphasis is placed on reducing the reliance on artificial lighting and mechanical ventilation, thereby lowering overall energy consumption.

The incorporation of inverter type air conditioners for both apartments and common areas signifies a commitment to energy efficient HVAC systems. LED lighting equipped with motion sensors ensures efficient use of energy by activating lights only when necessary.

Common areas operate with energy efficient equipment such as lifts and water pumps, contributing to the project’s overall energy efficiency. Meanwhile, water efficient fixtures – including mixer taps, showers and water closets – have been carefully selected to minimise water consumption.

The inclusion of a rainwater harvesting system underscores the project’s dedication to conserving water resources. In addition, a sewer treatment plant has been implemented to recycle water for common areas, showcasing a sustainable water management approach.

Q: How does Blue Star Realties, as a group company of Access, contribute to its overall business objectives and portfolio?

A: Blue Star Realties significantly contributes to the overall business objectives and portfolio of the group through its successful completion of projects such as Capital Heights. By constructing the first residential high-rise building within the Access Group, Blue Star Realties has not only added a prestigious property to its portfolio but has also expanded the organisation’s market presence and offering.

Capital Heights, being a luxury 40 storey building, represents a strategic move to tap into the upscale residential real estate market. This project not only enhances the aesthetic appeal of the Access portfolio but also caters to the growing demand for high quality, premium living spaces. The emphasis on delivering the best quality in construction aligns with Access commitment to excellence and customer satisfaction.

Furthermore, the provision of good customer service associated with the Capital Heights project contributes to the positive reputation of the Access Group. Satisfied customers often lead to positive word-of-mouth referrals and repeat business, fostering long-term relationships and enhancing the overall brand image of the group.

Blue Star Realties’ successful development of Capital Heights has a dual impact on Access – it enriches the group’s property portfolio with a high profile, luxury residential building, and reinforces the commitment to quality and customer service, ultimately contributing to the achievement of its broader business objectives.

Q: And finally, how do you perceive the country’s real estate sector?

A: The perception of the country’s real estate sector is closely tied to government decisions. I believe that government policies – especially the prevailing tax structure – play a crucial role in shaping the landscape of real estate investment.

The existing tax structure poses challenges for potential investors, particularly those interested in high-rise buildings. This implies that there may be barriers to entry or financial hurdles that could hinder investments in certain segments of the real estate market.

To foster real estate development in Sri Lanka, I believe the government must consider providing facilities that encourage investment. This includes measures such as tax exemptions or other incentives to make real estate investments more attractive to potential investors.

Policy makers must also explore ways to remove obstacles and create an environment that supports and promotes investments in the sector. The success and growth of the real estate sector is contingent on the ease and practicality of investment.

– Compiled by Tamara Rebeira

 

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Telephone: 2888313 | Email: info@bluestarrealties.com | Website: www.bluestarrealties.com