RPP Infra Projects has decided to withdraw from the proposed Legend 96 residential project in Sri Lanka, citing delays in securing approvals, difficulties in arranging project financing and differences over the proposed financing structure.
The company’s subsidiary, RPP Infra Projects (Lanka), had entered into a Development and Financing Agreement with Wills Realtors on January 28, 2025.
Under the agreement, RPP Infra was to participate as the joint developer, while Wills Realtors was to act as the primary developer of the project.
RPP Infra said the project had been delayed as it took time to obtain regulatory, statutory and building approvals in Sri Lanka. It also said arranging financing through Indian banks had proved difficult given the conditions in Sri Lanka, prompting the parties to explore local financing options.
As part of the proposed local financing arrangements, the project land was expected to be offered as security for the financing. However, Wills Realtors was not willing to provide the land as security, according to RPP Infra.
The company also said that a proposal was made to change the revenue-sharing arrangement agreed under the development and financing agreement if the land were to be used as security.
After considering the delays, financing issues, proposed security arrangements and changes to the revenue-sharing terms, RPP Infra said it had concluded that continuing with the project was not commercially and financially feasible.
The subsidiary has therefore decided to discontinue its participation as joint developer and has communicated its intention to terminate the agreement to Wills Realtors through a letter dated October 7, 2026. The two parties will also settle amounts payable between them.
RPP Infra said it had incurred expenditure during the initial stages of the project, including assignment fees and other payments linked to assignment and development rights.
The company is seeking to recover these amounts from Wills Realtors, with the parties expected to discuss and agree on the settlement process.
The company said its withdrawal from Legend 96 is not expected to have a material adverse impact on its ongoing operations. The disclosure filed with the stock exchanges also lists delays in approvals, difficulties in arranging financing, the unavailability of the project land as security and the proposed change to the revenue-sharing arrangement as the reasons for the withdrawal.
The Legend 96 project was described in the filing as a residential complex in Sri Lanka involving RPP Infra Projects (Lanka) and Wills Realtors. The development agreement was signed on January 28, 2025, and the withdrawal was communicated on October 7, 2026.
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