KUALA LUMPUR: ADVANCE SYNERGY BHD is buying back the Holiday Villa Cherating property from Amanah Raya Bhd for RM22.96mil.
It said on Thursday its indirect unit Cherating Holiday Villa Bhd (CHV) had signed a sale and purchase agreement with Amanah Raya to buy back the resort hotel.
The property consisted of an administration building, hotel/ apartment blocks, standard and individually designed chalets and villas and other ancillary buildings and structures.
CHV is currently the lessee of the property after the completion of the sale of the property to AmanahRaya on June 23, 2006 for RM21.87mil.
Under the sale and leaseback deal, CHV has an option to buy back the property upon expiry of the leaseback period at RM23mil. The lease will expire on June 22, 2021.
The property has 100 guest rooms and 12 exclusive Malaysian boutique villas known as Eastern Pavilion, four meeting rooms, restaurants, pub and karaoke lounge.
ASB said the Property is 25.5 to 31 years' old and was acquired by CHV in 1987 for RM16.3mil.
Based on ASB's audited financial statements for FY ended Dec 31, 2018, the net book value of the property was RM36.90mil after considering the last revaluation of the property conducted in 2016.
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