LABUAN: Labuan Corporation (LC) today received a RM12 million five-storey commercial building, which will help the local authority to generate revenue for its coffers.
The mixed-development project, comprising shop lots and office spaces, was developed by Hotel Aifa Sdn Bhd via a joint venture deal between the two parties.
The project at Jalan Muhibbah was commenced in 2016, with the LC as the landlord and Hotel Aifa Sdn Bhd as the developer.
LC chairman Datuk Seri Amir Hussien said the handover of the building was agreed upon by the developer after obtaining the nod for the development of the 13-storey Aifa Hotel 2 on LC's land.
“We hope we can tap into the niche market, offering our office space to companies involved in the financial sector which are now required to set up offices on the island as part of the compliance set forth by the Labuan Financial Services Authority,” he said at a press conference after the handing over ceremony here today.
He said the LC is projecting at least RM16 million in revenue when all the premises are rented out.
The 13-storey hotel, comprising serviced apartments with at least 140 rooms, is a boon to Labuan's tourism industry, owing to the lack of hotel rooms to cater for the increasing number of visitors to the island.
“We are in discussions with the management of Hotel Aifa to turn the proposed Hotel Aifa 2 into a franchise hotel of Tune Hotel, so that we can attract more tourists to Labuan,” Amir said. - Bernama
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