Amanahraya REIT to dispose of Holiday Villa Langkawi for RM145mil

KUALA LUMPUR: AmanahRaya Real Estate Investment Trust (AmanahRaya REIT) has entered into a sale and purchase agreement with Plenitude Bhd’s wholly owned unit Plenitude Gateway Sdn Bhd for the proposed disposal of Holiday Villa Beach Resort and Spa Langkawi for RM145 million.

The proposed sale of the four-star beach resort hotel building with 238 rooms would represent an opportunity to dispose of the property to repay existing borrowings and optimise the trust’s gearing level, said AmanahRaya REIT in a filing with Bursa Malaysia today.

"The proposed disposal is also in line with the growth strategy of AmanahRaya REIT to unlock and realise higher returns on its investments at a favourable price,” it said.

AmanahRaya REIT is represented by Pacific Trustees Bhd as trustee in this deal.

The property, which is currently leased by Langkawi Holiday Villa Sdn Bhd and operated as a Holiday Villa brand, was acquired by the trust at a price of RM55 million on Feb 26, 2007, it said.

Meanwhile, in a separate filing with the bourse, Plenitude said the proposed acquisition would be a continuation of the company’s diversification of its regional risk in its hospitality business.

It said the proposed investment would present an attractive opportunity for the company to further expand its footprint in the hospitality sector by diversifying into the island.

"The hotel is also strategically located in tourism-related properties such as the Underwater World Langkawi, Laman Padi, Cenang Mall and Cenang Plaza.

"It is located about 20 kilometres away from Kuah town, which is the main commercial and administrative centre for Langkawi,” it said.

The group said the corporate exercise is not expected to have a material impact on the earnings and earnings per share of Plenitude for the financial year ending June 30, 2023.

"However, it is expected to contribute positively to the future earnings of the Plenitude Group,” it said.

Barring any unforeseen circumstances, the proposed deal is expected to be completed by the first quarter of 2024, it added. - Bernama