In Kuala Lumpur, IGB Corp., controlled by the Tan family, announced that it is selling the Renaissance Kuala Lumpur Hotel for RM765 million in cash (more than $191 million) to Ventura International, a limited company formed last year in Malaysia that was formerly known as Canali Logistics
IGB purchased the 910-room hotel for RM506.6 million 20 years ago when the property opened. The disposal is expected to be completed within four months.
In a filing with Bursa Malaysia, IGB said its wholly owned subsidiary, Great Union Properties, had entered into a conditional sale and purchase agreement with Ventura International for the proposed disposal of the hotel, free from all encumbrance and liabilities. According to IGB, GUP’s original cost of investment in the hotel was RM506.6 million.
“The hotel had been revalued in previous financial years and the accumulated revaluation surplus net of tax of approximately RM140 million had been credited to GUP’s retained earnings. Based on GUP’s latest audited financial statements as at Dec 31, 2015, the net book value of the hotel was RM667.2 million,” it said.
This means that Ventura International is paying a RM97.8 million premium over the hotel’s net book value.
IGB said Ventura International will be taking a loan from one or more financial institutions to facilitate the proposed acquisition.