As reported in The Star Online, Renaissance Kuala Lumpur Hotel owned by property company IGB Corporation Bhd's unit Great Union Properties Sdn Bhd (GUP) will be sold to Ventura International Sdn Bhd for RM765mil.
IGB said the hotel, which was completed in mid-1996 is expected to make a gain of RM85mil net of tax for FY ending Dec 31, 2017. The original cost of investment in hotel was RM506.6mil.
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.
They said that the business assets contributed approximately 8% to the group’s revenue for the FY ended Dec 31, 2015. GUP’s contribution to the group revenue and pretax profit for the past three FYs ended Dec 31, 2013, 2014 and 2015 were RM108.5mil, RM103.9mil and RM93.7mil respectively, and RM4.6mil, RM600,000 and net loss of RM7.9mil, respectively.
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