Impiana Hotels sells Cherating properties

PETALING JAYA: Impiana Hotels Bhd is disposing of 146 units of serviced suites in Cherating to Silver Max Asia Pacific Labuan Ltd for RM146 million.

Concurrently, Impiana also signed a lease management agreement with Silver Max for the properties as well as a deed of mutual covenant for the management and maintenance of the property.

According to the group’s filing with Bursa Malaysia, for the first term of five years under the lease management agreement, Impiana will rent the properties from Silver Max at 5% of the purchase price of the property with an increase of 2% per annum of the preceding rental return for the preceding year.

In the subsequent five years, the group will be charged a 3% increase from the first term rental returns along with a 25% share of the profits made from the operations.

Following the expiry of the two terms, there is an option for the Impiana to extend for a third term subject to mutual agreement of both parties.

Impiana said the commencement date will commence once the properties are in operational conditions or six months from its vacant possession, whichever is earlier.