The upcoming performance and earnings visibility would remain “tough moving forward,” they said, adding that the delisting would also cut costs and savings would be ploughed back into refurbishment of the hotels.
The group is principally engaged in hotels and service apartments, the provision of limousine services and hotel management.
The latest term loan facility is expected to increase the group’s gearing ratio to 1.
LFE said its wholly owned subsidiary LFE Engineering Sdn Bhd had accepted two letters of awards from MLG Design & Construction Sdn Bhd to be appointed as a subcontractor for the hotel project in George Town.
Of the assets that were acquired, 80% were equities while the remaining 20% comprised properties.
It features 200 rooms and 17 villas and facilities, such as a 24-hour fully-equipped fitness centre and a yoga deck, swimming pools, jacuzzi, The Qi Forest Spa & Wellness, a 551 sq m grand ballroom with a built-in LED screen, and three restaurants called Dapur, Sekoci, and Greatroom Bar and Lounge.
The proposed sale of the 384-room hotel includes office and retail space within the 21-floor main building and four-floor annex building with parts leased to specialty restaurant operators, Colliers said in a statement.
"Because of the lack of a signed land lease agreement, Lada was unable to collect the annual lease fee of RM660,000 for almost five years, resulting in a total loss of RM3.
In a note on Thursday, the research house maintained its "buy" call on the REIT following its acquisition, with a higher fair value (FV) of RM1.
YTL REIT boasts a total of 10 hotel properties in Malaysia, including hotel chains such as JW Marriott Hotel Kuala Lumpur, The Majestic Hotel Kuala Lumpur and The Ritz Carlton Hotel Kuala Lumpur.
The only property app you need. More than 200,000
sale/rent listings and daily property news.
