Paramount plans hotel project with Singapore firm

KUALA LUMPUR (Aug 25): Paramount Corp Bhd is tying up with a Singapore firm to undertake a proposed hotel development in the former's integrated township, Paramount Utropolis at Glenmarie, Shah Alam.

According to Paramount's bourse filing today, the property developer has entered into a joint venture agreement (JVA) with Lasseters Properties Sdn Bhd and Lasseters Management (M) Sdn Bhd to jointly participate in the equity of Super Ace Resources Sdn Bhd.

Lasseters Properties and Lasseters Management are wholly-owned subsidiaries of Singapore-listed Lasseters International Holdings Ltd.

Super Ace Resources is the joint venture vehicle to be used to jointly undertake the proposed hotel project.

According to the filing, Super Ace Resources is tasked to develop and/or acquire a building to be erected on a stratified title, to advise on the design and fit-out of the building suitable for use as a hotel, and to identify and procure a hotel operator to manage and operate the hotel.

Super Ace Resources is currently a wholly-owned subsidiary of Paramount. Pursuant to the JVA, Lasseters Properties and Lasseters Management shall subscribe for new ordinary shares in the company within such time period as agreed upon, which will result in Super Ace Resources ceasing to be a subsidiary of Paramount.

After the proposed share buy, Paramount's stake in Super Ace Resources will be trimmed to 45%, while Lasseters Properties and Lasseters Management will control 54% and 1%, respectively.

"A detailed announcement will be made upon the determination of, among others, the estimated development cost, the hotel operator and brand as well as the type and classification of the hotel," Paramount said.

Shares in Paramount closed one sen or 0.68% higher at RM1.47 today, for a market value of RM617.48 million. —

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