Berjaya Land to shed asset in Phu Quoc

Berjaya Land agreed to transfer 70 per cent of Long Beach Resort Phu Quoc

In a filing with Bursa Malaysia, Berjaya Land Berhad (BLand) announced transferring its entire 70 per cent holding in Berjaya Long Beach Resort Phu Quoc (BLong Beach) to Sulyna Hospitality Hotel Restaurant Travel Service Co., Ltd. (Sulyna).

In addition, according to the agreement between the two parties, Berjaya Leisure (Cayman) Ltd. will also waive the entire debt amount of about VND87.50 billion ($3.85 million) owed to it by BLong Beach so that the acquirer can take over the holding free from all encumbrances.

The transfer is expected to take place by early 2018, including the waiving of debts by Berjaya Leisure (Cayman) Ltd. The gross proceedings, estimated at VND333.25 billion ($14.67 million), will be utilised as working capital of the BLand Group.

The remaining 30 per cent stake is in the hands of joint venture partners Le Thi Chi Private Enterprise (25 per cent) and Long Beach JSC (5 per cent).

BLong Beach received its investment certificate and was incorporated on November 1, 2007. BLong Beach was principally involved in the operation and management of an international 4-star resort cum spa hotel on Phu Quoc Island, known as the Long Beach Resort Phu Quoc.

The hotel has 109 standard rooms, 6 suites, and 4 VIP suites, with a swimming pool, restaurants, functioning/banquet rooms, and a spa centre.

BLand decided to go ahead with the deal in order to realise its investment in BLong Beach.

Berjaya Land Berhad is one of the largest subsidiaries of the Berjaya Corporation. It operates in real estate, casinos, and entertainment.

BLand will have a controlling interest in two large hotels after disposing of BLong Beach, namely InterContinental Hanoi Westlake (75 per cent ownership) and Sheraton Hanoi Hotel (70 per cent). According to BLand’s 2016 annual report, both hotels saw increasing occupancy rates on-year, with 2.1 and 9.9 per cent, respectively, and increasing revenues.

Additionally, BLand is the 100 per cent owner of Vietnam Financial Center and Vietnam International University Township in Ho Chi Minh City. It also holds an 80 per cent interest in property developer Berjaya-Handico 12 Co., Ltd. known for Hanoi Garden City, and a 75 per cent stake in Bien Hoa City Square in Dong Nai province.

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