KUALA LUMPUR (Feb 28): Berjaya Corp Bhd (BCorp), controlled by tycoon Tan Sri Vincent Tan Chee Yioun, is selling its trust beneficial interest on the hotel component of the Four Seasons Hotel & Hotel Residences Kyoto, Japan for 49 billion yen (RM1.87 billion) cash.
BCorp said the disposal will enable the group to monetise its investments in the hotel, with an estimated gain exceeding RM600 million. The disposal is targeted to close in mid-March.
In a statement today, BCorp said its subsidiary Kyoto Higashiyama Hospitality Assets Tokutei Mokuteki Kaisha (KHHA) has entered into an agreement with Japanese firm Godo Kaisha Tigre on the proposed disposal of the trust beneficial interest.
Subsequently, Berjaya Kyoto Development Kabushiki Kaisha (BKD), another subsidiary of BCorp, will leaseback the hotel from Tigre for 17 years to maintain the present arrangements and operations of the hotel.
“I am happy to dispose this hotel, which is only about 3½ years old, for a huge gain,” said Tan, who is executive chairman of BCorp.
“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, BCorp Group is expecting to realise a total net gain of about RM1.55 billion with gross cash inflows surpassing RM3.22 billion for our entire Four Seasons Hotel and Residences project in Kyoto,” he added.
Both KHHA and BKD are wholly-owned subsidiaries of Berjaya Kyoto Development (S) Pte Ltd, which in turn is equally-owned by BCorp and its listed 73.04%-owned subsidiary Berjaya Land Bhd (BLand).
In a separate filing with Bursa Malaysia today, BLand said the proposals are expected to result in a share of estimated profit of about RM201.9 million at the group.
At 2.06pm, BCorp shares were down one sen or 4.26% at 22.5 sen, valuing it at RM1.17 billion. Shares of BLand slipped one sen or 5.88% at 16 sen, bringing its market capitalisation to RM800.05 million.