Penang’s The Rice Miller project seeks saviours

PETALING JAYA (Feb 19): The receivers and managers of Asian Global Business Sdn Bhd, the developers of The Rice Miller Hotel and Residences project in George Town, Penang, are looking for white knights to rescue the project, reported The Edge weekly.

The ambitious project, which costs RM250 million, had started in 2010 and is understood to have been abandoned a year ago.

Comprising The Rice Miller City Residences, retail lots, commercial blocks, The Rice Miller Hotel and the godowns, the project is sited on four plots that total three acres within the George Town Unesco World Heritage site.

Last August, Malaysia Building Society Bhd (MBSB) had appointed Yeoh Siew Ming and Lim Keng Peo as receivers and managers of the residential and commercial parts of the project, while in November last year, Bank Pembangunan Malaysia Bhd has appointed Lim San Peen as the receiver and manager of the hotel and godowns.

In late January, Deloitte Corporate Solutions Sdn Bhd, who acted on behalf of the receivers and managers, had invited expressions of interest (EOI) for the residential and commercial portions that feature 99 units of serviced residences suites, 23 retail lots and two commercial blocks.

The weekly understands that the buildings will include 60 parking bays.

The EOI deadline is March 30, 2018.

Meanwhile, PricewaterhouseCoopers Advisory Services Sdn Bhd — acting on behalf of San Peen — had in early January invited prospective investors to submit their offers for the hotel and godowns; the submissions closed on Jan 29, 2018.

The weekly highlighted that the receivers and managers are acting in their personal capacities.

San Peen is handling components that include a five-storey neoclassical hotel with 46 high-end suites, a two-storey pre-war building under conservation called Kate at 9, a pre-war single-storey godown that has been extended to four storeys and two double-storey pre-war godowns.

The three godowns are intended to feature hotel facilities such as a swimming pool, fitness centre, kitchen and meeting rooms, which are believed to be 80% to 90% completed.

Hotel industry players have told The Edge weekly that Dr Noraini AR Abdullah — one of the shareholders of Asian Global Business — had approached numerous hotel owners to buy the hotel without much luck.

An information pack by Deloitte Consulting purchased by the weekly states that Asian Global Business owes MBSB RM24.63 million in principal and interest under two bridging loans.

The receivers and managers have proposed two options to recover the sum owed, one of which is for an entity to acquire the charged assets on an “as is where is” basis and take over the project; however, they are also open to other proposals.

The pack also stated that there are two residential phases on top of the retail lots, with the first phase 91% completed.

Of the first phase, 82 out of 85 homes have been sold while 19 of 21 retail lots were taken up.

Meanwhile, the second phase is only 20% completed, with just five of the 14 residential units sold whereas none of the two retail lots have been taken up.

On the other hand, out of two commercial blocks, only one has been sold but it is only 25% completed while construction progress for the second block is only at 2%.