TA Global aims balanced contribution

KUALA LUMPUR: TA Global Bhd, which expects its proposed acquisition of Trump International Hotel & Tower Vancouver in Canada to bring in C$5.843 million (RM17 million) in gross operating profit in 2017, aims to have a balanced contribution from its hotel operations and other business segments in the future, said its executive director Kimmy Khoo Poh Kim.
"The ideal situation will be a more balanced one, rather than over 70% from hotel operations. About 50% from hotel and 50% from others would be ideal as we move on," Khoo told a press conference after the group's EGM here yesterday, adding that this would depend on the opportunities available.
TA is involved in a diversified range of property services, which includes property development, property management, property investment, trading, hospitality operations and construction.
It obtained 71% of its revenue for the financial year ended Jan 31, 2014 (FY14) from hotel operations, while property development, property investment, as well as credit and lending contributed the remaining 30% revenue.
"We want the (property) development (segment) to catch on. The hotel and hospitality (business) is a stabiliser. When we don't have development, the hotels give us a consistent recurring income that will sustain us as property is cyclical," Khoo said.
Earlier, shareholders approved its proposed acquisition of the Trump International Hotel & Tower Vancouver by its subsidiary Maxfine International Limited, representing the first Trump asset within its portfolio.
TA is jointly developing the 63-storey luxury hotel and residences with Birkbeck Trust under a limited partnership arrangement with a contribution of C$110 million by each party. The total projected gross development value of this project is C$496 million and is expected to be completed in mid-2016.
TA will continue its lookout to acquire hotels, usually in Asia Pacific, as well as landbank for development.
"When we buy hotels, the key things we look for, based on our portfolio is that it is iconic, in a strategic location like the central business district, mainly corporate hotels and those with yields," said Khoo.
Its other hotel operations include the Westin Melbourne and Radisson Blu Plaza in Australia, Movenpick Resort & Spa, Phuket in Thailand, Swissotel Merchant Court in Singapore, Swissotel Kunshan in China and Aava Whistler Hotel in Canada.
On the TA 3 and 4 mixed commercial development opposite KLCC, the group is in negotiation with an international hotel chain to brand and operate the hotel and serviced residences.
"We've signed a letter of intent and we're working on the hotel management agreement, discussing the terms and going through the clauses," she said, adding that it hopes to commence earthworks by year-end with the project taking about two years to complete before it can be launched.
She said TA has over 224 acres of undeveloped landbank in Malaysia, which will keep it busy for the next eight to 10 years. It also has a landbank of 33 acres in Australia that will last for seven years as well as 22 acres in Canada.