IGB Corp sells Renaissance Hotel KL for RM765m

PETALING JAYA: IGB Corp Bhd is selling Renaissance Kuala Lumpur Hotel to Ventura International Sdn Bhd for RM765 million.
In a filing with Bursa Malaysia yesterday, IGB said a conditional sale and purchase agreement was signed between wholly owned subsidiary Great Union Properties Sdn Bhd (GUP) and Ventura International yesterday.
IGB said the divestment will accord the group with a gain of RM85 million net of tax for the financial year ending Dec 31, 2017. It will improve the net assets per share and earnings by six sen.
IGB intends to utilise the proceeds for working capital and to support its continued growth for suitable acquisitions or investments when such opportunity or opportunities arise.
The hotel is located along the corner of Jalan Sultan Ismail and Jalan Ampang in Kuala Lumpur, and is managed by Renaissance Hotels International Corp Ltd.
The audited net book value of the asset, which includes all buildings, structures, plant, machinery and equipment as well as fitting, furnishings and fixtures, was RM667.2 million as at Dec 31, 2015.
The hotel was completed and commenced operations in mid-1996. GUP’s original cost of investment was RM506.6 million.
The hotel has been revalued in previous financial years and the accumulated revaluation surplus net of tax of about RM140 million had been credited to GUP’s retained earnings.