KUALA LUMPUR: Property developer Plenitude Bhd has proposed to invest in a 13-storey hotel in Seoul, South Korea, for approximately RM114.3 million via its indirect-owned Singaporean subsidiaries, Plenitude Koi Pte Ltd and Bizcentre Capital Pte Ltd.
The proposed acquisition comes following the subsidiaries’ subscription for the beneficiary certificates (BC) of Capstone General Private Investment Trust No. 40 -- a real estate investment trust which was established for the acquisition.
In a filing with Bursa Malaysia today, Plenitude said it currently owned 10 hospitality assets and the acquisition of the hotel would be a continuation of the diversification of its regional risk in the hospitality business and to expand its footprint in the South Korean market.
"The company’s first overseas hotel in Seoul, Travelodge Myeongdong Euljiro, is currently performing at an occupancy rate of above 80 per cent and an average daily rate of more than KRW 90,000 (RM320) since January 2023.
"The company believes that the proposed investment will continue to enhance its business in South Korea and achieve economies of scale in operations, especially since these two hotels are located just 450 metres away from each other,” it said.
Plenitude added that it intended to fund the costs and expenses related to the proposed investment through a combination of internally generated funds and/or bank borrowings. - Bernama