PETALING JAYA: Berjaya Corp Bhd (BCorp) has proposed to dispose of its interest in the Four Seasons Hotel & Hotel Residences Kyoto, Japan to Godo Kaisha Tigre for a cash consideration of 49 billion yen (RM1.87 billion) via its subsidiary, Kyoto Higashiyama Hospitality Assets Tokutei Mokuteki Kaisha (KHHA).
According to the group’s Bursa disclosure, it entered into a real property trust beneficial interest purchase and sale agreement with Tigre for the proposed disposal by KHHA on the hotel component of the Four Seasons Kyoto.
Subsequently, BCorp’s other subsidiary, Berjaya Kyoto Development Kabushiki Kaisha (BKD), will leaseback the hotel from Tigre for 17 years to maintain the present arrangements and operations of the hotel.
Both KHHA and BKD are 100%-owned subsidiaries of Berjaya Kyoto Development (S) Pte Ltd, which in turn is held by BCorp and its listed subsidiary Berjaya Land Bhd, each holding 50% equity interest.
BCorp estimated that the monetisation of its investments in the hotel will result in a gain exceeding RM600 million.
On the transaction, BCorp’s executive chairman, Tan Sri Vincent Tan commented that he is happy to dispose of the three and a half year old hotel for a huge gain.
“Together with the 23 units of the Four Seasons Kyoto residences which were already sold and the estimated profit from the potential sale of the remaining 34 units of the residences, the BCorp group is expecting to realise a total net gain of about RM1.55 billion with gross cash inflows surpassing RM3.22 billion for our entire Four Seasons Hotel and Residences project in Kyoto,” he said in a press statement.
The RM1.55 billion net gain is 38.4% higher than BCorp’s market capitalisation of RM1.12 billion based on its closing price of 21.5 sen on Friday.
Besides the hotel, the group developed 57 units of residences, also operated under the Four Seasons Hotel & Hotel Residences, Kyoto brand name. These residences are not part of the disposal.
The proposed disposal is expected to close in mid-March 2020.
