news

TA Global may buy more hotels

KUALA LUMPUR: TA Global Bhd, the 63.08%-owned property arm of stockbroking business TA Enterprise Bhd, said it is open to acquiring more hotels, after shareholders backed the company’s plan to buy the rest of the luxury Trump International Hotel in Vancouver, Canada for C$100 million (RM290.7 million).


TA Global executive director Kimmy Khoo Poh Kim said however, future acquisitions will depend on the price and location.

“If there is an opportunity, and the price and terms are right, we are open to it,” she told reporters after the company’s extraordinary general meeting yesterday.

During the meeting, 99.94% of TA Global shareholders voted in favour of its proposal to acquire Trump International Hotel.

“We are not surprised by the decision,” said TA Global independent director Peter U Chin Wei, adding that its shareholders have always been supportive of the company’s proposals.

Khoo said having secured the approval of its shareholders, TA Global will take full ownership of Trump International Hotel. It currently holds a 50% stake in the hotel, with the remaining 50% being held by Canada-based Holborn Group.

The Trump International Hotel is still under construction and it is expected to be completed in June 2016.

TA Global said the hotel is expected to attract favourable demand as it is strategically located in the central business district of Vancouver.

It features 147 guest rooms, signature restaurant, The Mar-a-Lago Spa by Ivanka Trump and 15,000 sq ft of meeting and event space.

On why the company had appointed the Trump Hotel chain as the hotel operator, Khoo said its standards of quality and  brand are renowned in the US.

“It is a very prestigious brand. It fits into what we want, so we think it is a perfect match,” she said.

Khoo said the terms of its hotel management agreement (HMA) with the Trump Hotel chain were also favourable to TA Global.

Khoo also said that she expects the hospitality industry in Canada to grow.

On the domestic front, she said TA Global has yet to secure a hotel operator for the TA3 and TA4 projects in Kuala Lumpur, which have been earmarked for a hotel, serviced apartment and residential development.

She said TA Global has already signed the letter of intent but is not in a position to reveal the details until it signs the HMA, adding that the company is still in negotiations over the terms in the agreement.

TA3 and TA4 are two plots of land at Jalan P Ramlee that are currently being used as car parks, which will be turned into two commercial tower blocks.

Shares of TA Global, with a market capitalisation of RM1.95 billion, closed flat yesterday at 38 sen.



This article first appeared in The Edge Financial Daily, on September 12, 2014.

 

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
SHARE