KUALA LUMPUR: ECM Libra Group Bhd
has entered into a joint venture with TP Real Estate Holdings Pte Ltd involving Ormond Group Sdn Bhd.
In a filing with Bursa Malaysia, ECM Libra said TP Real Estate Holdings will subscribe for 12.5 million new shares in Ormond Group for RM100,000.
Upon completion, Ormond Group will cease to be a wholly-owned subsidiary of ECM Libra and will be owned equally by ECM Libra and TP Real Estate Holdings on a 50:50 basis.
The group said the joint venture would allow Ormond Group to leverage the “Ormond” and “Momo’s” hospitality brands owned by Plato subsidiaries, alongside the “Tune” brand currently managed by Ormond Group.
Separately, Ormond Group has entered into hotel management agreements with ICSD Ventures Sdn Bhd for Ormond Hotel Sandakan and The RuMa Hotel KL Sdn Bhd for The RuMa Hotel and Residences.
The agreements are for an initial two-year term, with an option to renew for another two years upon mutually agreed terms.
“The cash consideration arising from the share subscription is intended to be utilised for working capital purposes, including advertising and promotional activities, to be carried out by Ormond Group,” it said.
ECM Libra said the hotel management agreements are expected to generate management fee income for Ormond Group and contribute positively to the group’s earnings.
The total fees payable by ICSD and TRH for the first two-year term are estimated at RM7.85mil, representing about 4.02% of ECM Libra Group’s audited net assets as at Dec 31, 2025.
The transactions are deemed related-party transactions due to the interests of certain directors and major shareholders, including executive chairman and major shareholder Datuk Lim Kian Onn.
