Impiana Cherating director Azrin Kamaluddin said the company aims to sell the remainder 90 units under phase one by the middle of next year under its new model of a sales and leaseback arrangement with investors.
“Impiana Resort and Residences Cherating is the first project of the Impiana group that is undertaking a sales and leaseback arrangement with investors, whereby the units of the resort are sold to investors and in return, the units are leased back to Impiana for a rental return. We will still operate the resort once construction is completed.
“The sales and leaseback arrangement is a new asset class for investors as they obtain steady yields and capital appreciation. We will also be replicating this model in our future developments,” he said after signing the sales and purchase agreement with Silver Max.
Phase one of the Impiana Resort and Residences Cherating, which is under construction, has a total of 257 units with a gross development value (GDV) of RM230mil. It is expected to be completed by end-2021 and early 2022.
The development of the 30-acre Impiana resort consists of three phases with a total GDV of RM413mil, of more than 400 units.
Given the sales and leaseback arrangement with Silver Max, Azrin said the company is guaranteed a 5% rental return annually from the purchase price of the units for the first five years with an increase of 2% per year of the rental return for the preceding year.
Moving forward, he expects the sale of the Impiana Resort and Residences Cherating units to contribute positively to both the top line and bottom line of Impiana Hotels Bhd by more than half.
Besides that, Azrin aims to boost the occupancy rate of the group’s hotels by 5% on the back of rising tourist arrivals in the first half of this year, adding that the group is looking for greenfield investment opportunities in Langkawi and Pangkor islands.
Currently, the group’s hotels occupancy rate stands at 70%.