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Tradewinds to redevelop Crowne Plaza and Kompleks Antarabangsa

KUALA LUMPUR (June 29,2012): Tradewinds Corp Bhd (TCB) confirmed that it will demolish the Crowne Plaza Mutiara Hotel and Kompleks Antarabangsa in Jalan Sultan Ismail to pave the way for a RM6 billion mixed development project.

The company said it will redevelop the 2.8 hectare land on its own, and not via a joint venture as reported previously. The project comprising grade A+ offices, serviced apartments and retail space, is scheduled to be completed in seven years.

Speaking to reporters after meeting with stakeholders here, its Chief Executive Officer Shaharul Farez Hassan said the project will be funded by bank loans and debt equity, with a ratio of 70:30.

"We are talking with a few banks now," he added.  Crowne Plaza is a 35-storey hotel with over 500 rooms while Kompleks
Antarabangsa is a 21-storey office building. The project once completed, will reportedly, be known as the Tradewinds
Centre.

The hotel will be officially closed on Jan 2, 2013, then demolished by the end of the first quarter. On compensation to Inter Continental Hotels Group (IHG), the current operator of Crowne Plaza Mutiara Hotel, he said a negotiation will be arranged
for this as IHG still have few years to manage the hotel.

"There’s a provision for all the unionised employees in the collective agreement and that is something that we will address together with them and the union," he added.

Besides this, Shaharul Farez said Tradewinds will also demolish Mutiara Burau Bay Resort in Langkawi to be redeveloped into a new five-star resort. He said some RM200 million will set aside for the proposed redevelopment, 100 per cent owned by Tradewinds Corp, once completed. The cabana will be closed in the first quarter of 2013 and ready in three years.

Despite the closing of these hotels, he said Tradewinds would still able to secure sufficient revenue from the hotel segment that contributed about 65 per cent to its revenue last year.

"Other hotels will be able to cushion the impact of the closing of several hotels." Tradewinds also owns Hilton Petaling Jaya hotel and Pelangi Beach & Spa Resort Langkawi as well as few other hotels and resorts in Langkawi, Johor, and
Pahang.

On Istana Hotel, he said there is a possibility for redevelopment, but not in the near-term as the Tradewinds Centre and redevelopment of Menara Tun Razak will keep the group busy for a few years. - Bernama

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