Avillion shares surge on news of offer received for group’s land

KUALA LUMPUR (Feb 25): Loss-making Avillion Bhd saw its shares rise in heavy trading on news that it has received an offer for its land in Port Dickson from a China-based investment group.

Trading volume swelled to 86.63 million shares, making it the most actively traded counter on Bursa Malaysia. In comparison, its 200-day average volume is only 3.84 million shares.

At 3.55pm, the counter was up half a sen or 3.23% at 16 sen, valuing the group at RM151.11 million.

The Star, quoting sources, reported over the weekend that a group called Guangxi East Hangyang Investment Group has made an offer of about RM380 million to purchase six parcels of land that Avillion owns in Port Dickson.

The offer includes the piece of land that houses one of Avillion’s main assets, The Avillion Hotel Port Dickson, the report said.

Guangxi East Hangyang, which was set up in the 1990s, describes itself as a company with a focus on high-end property development, hotels, food and beverage, tourism and entertainment. It also says it has partnered international brands such as Walmart and Mariott.

According to its 2019 annual report, the undeveloped land at Admiral Cove development in Port Dickson as well as other land in Port Dickson measure about 2.01 million sq ft, with a net book value of RM36.51 million.

Avillion Hotel, on the other hand, has a total land size of 620,443 sq ft, with a total net book value of RM155.3 million.

All in, together with the land occupied by Avillion Hotel and the Admiral Cove Premier Integrated Marina Resort, the total land Avillion has in Port Dickson is 3.6 million sq ft, and has a net book value of RM258.64 million.

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