BY ZUNAIRA SAIEED
KUALA LUMPUR: Berjaya Corp Bhd will advance over RM152mil to Berjaya Kyoto Development (S) Pte. Ltd (BKyoto) and subscribe for a 50% stake in the latter which is undertaking a billion-ringgit property project in Kyoto, Japan.
Under the corporate exercise, BCorp said on Tuesday it was subscribing for the 50% stake in the enlarged paid-up of BKyoto for S$34.66mil cash (RM97.28mil) cash.
BCorp would then advance up to RM152.74mil to the BKyoto Group for the purposes of working capital and proportionate settlement of the inter-company loan with Berjaya Land Bhd.
BKyoto is undertaking a commercial development in Kyoto with a estimated development cost of 33.69bil yen (RM1.05bil).
The group is involved in developing resort hotel and residences. It owns five acres of freehold land about 2km from the Kyoto station, the main transportation hub for Kyoto.
The BKyoto Group is developing the said land into a commercial development comprising a 123-room hotel and 57 units of residences known as the Four Seasons Hotel & Residences.
The estimated development cost (inclusive of the land) of about 33.69bil yen (RM1.05bil).
The Four Seasons Project will be managed by Four Seasons Hotel, Inc. and is expected to be completed by the third quarter of 2016. Presently, about 45% of the construction works of the Four Seasons Project has been completed.
BCorp said the proposed subscription of S$34.66mil was based on the adjusted unaudited net assets of the BKyoto Group, the open market valuation of the Four Seasons project of 36.50bil yen (RM1.14bil) and potential earnings of the Four Seasons project.
“The proposals will provide an opportunity for BCorp to invest directly and own the Four Seasons Project, an iconic luxury hotel and residences in Japan thereby increasing its landbank and portfolio of the properties owned which also include the luxury residences ‘The Ritz-Carlton Residences’ in Malaysia to be marketed and managed by Ritz-Carlton Hotel,” it said.
