Ivory Properties to purchase Penang's Copthorne Orchid Hotel for RM75mil


Copthorne Orchid Hotel & Resort Penang will be redeveloped.

KUALA LUMPUR: Ivory Properties Group Bhd has entered into a sale and purchase agreement for the acquisition of Copthorne Orchid Hotel & Resort Penang for RM75mil cash.

In a filing with Bursa Malaysia, the group said it had purchased the property on behalf of its subsidiary Ivory Utilities Sdn Bhd (IUSB), for the development of a hotel and serviced apartment with an estimated gross development value of about RM410mil.

"IUSB will be submitting the proposed development plans to the relevant authorities for approval.

"Therefore, it is too preliminary at this stage to ascertain the total development cost and expected profits to be derived from the proposed development," it said.

Subject to authorities' approval, the development is expected to commence in 2022 over a span of three to four years.

The proposed acquisition is not expected to have any material effect on the earnings of the company for the financial year ending March 31, 2020 but is expected to increase gearing by RM53mil, assuming 70% of the purchase consideration is financed by bank borrowings.

According to Ivory Properties, the Copthorne Orchid Hotel & Resort is located in a matured and prestige development area in Penang, with ready infrastructure, connectivity and easy access.

"The Board believes that the demand for serviced apartments is promising in view of the strategic location of the Property and anticipates the property market to improve gradually in the future," it said.

Earlier this year, news sites reported that the Copthorne Orchid Hotel & Resort had ceased operations amid the Covid-19 pandemic.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

Moody’s: Sustainable bonds issuance to top US$850bil
Public Mutual declares gross distributions of RM235m for 13 funds
Central banks go big on gold buying
Earnings bounce, bond-yield drop help keep party going for US stocks
Bitcoin rallies past key $40,000
PBOC: China will maintain prudent, flexible monetary policy
Bank Rakyat launches entrepreneur programme
CPO futures seen trading with upward bias next week
As scrutiny mounts, crypto exchange Binance to wind down derivatives in Europe
Oil price climbs, notches fourth monthly gain on growing demand

Stories You'll Enjoy


Vouchers