BERJAYA Corporation Bhd has proposed to sell Four Seasons Hotel & Hotel Residences Kyoto, Japan, for about RM1.87 bil cash, making an estimated gain of more than RM600 mil.
In an announcement to Bursa Malaysia, the company said it has entered into a Real Property Trust Beneficial Interest Purchase and Sale Agreement for the proposed disposal of the trust beneficial interest on the hotel component.
The agreement, which was entered into by the group’s subsidiary Kyoto Higashiyama Hospitality Assets Tokutei Mokuteki Kaisha, is expected to be completed in mid-March. The buyer is Godo Kaisha Tigre.
Subsequently, Berjaya Kyoto Development Kabushiki Kaisha, another subsidiary of Berjaya Corp, will lease back the hotel from Tigre for 17 years to maintain the present arrangements and operations of the hotel.
It was noted that the disposal “provides an opportunity for the group to monetise its investments in the hotel at a very attractive price.”
“I am happy to dispose of this hotel which is only about 3½ years old for a huge gain. Together with the 23 units of the Four Seasons Kyoto residences which were already sold and the estimated profit from the potential sale of the remaining 34 units of the residences, the Berjaya Corp group is expecting to realise a total net gain of about RM1.55 bil with gross cash inflows surpassing RM3.22 bil for our entire Four Seasons Hotel and Residences project in Kyoto,” said Berjaya Corp executive chairman Tan Sri Vincent Tan.
As of 4pm, Berjaya Corp shares were last done at 23 sen, down half a sen, with 16.72 million shares changing hands. – Feb 28, 2020
