Odel scraps plans for luxury apartments at Ward Place mall

Odel PLC has scrapped plans for luxury apartments at its flagship Odel Mall project in Ward Place, pivoting instead to office space as part of a broader remedial strategy to address severe financial headwinds that have seen the retailer placed on the Colombo Stock Exchange's Watch List.

- By NISHEL FERNANDO

The strategic shift was disclosed alongside the company’s annual report for the 2024/25 financial year, where Odel reported a net loss of Rs.445 billion. Independent auditors Ernst & Young raised a fed flag on the company’s financial health, citing a“material uncertainty” regarding its ability to continue as a going concern, due to the accumulated losses of Rs.12.7 billion and current liabilities exceeding the current assets by Rs.15.2 billion.

In a major strategic shift concerning its mixed development project in Ward Place, Odel announced that the originally planned residential apartment component of Odel Mall will no longer proceed. The management has decided to repurpose the space allocated for apartments into rentable office space.