Singapore firm buys Royale Chulan Bukit Bintang for RM197m in cash

By FARA AISYAH

Boustead Holdings Bhd’s wholly owned subsidiary, Boustead Hotel and Resorts Sdn Bhd, is disposing of the Royale Chulan Bukit Bintang Hotel to Singapore-based Hotel Royal Ltd for RM197 million in cash.

The company said it has received the offer from Hotel Royal for the hotel located in a prime district of Kuala Lumpur (KL).

The company said it has decided to dispose of one of the hotels as it also owns Royale Chulan KL, and the close proximity of both hotels had led to the disposal of the Royale Chulan Bukit Bintang Hotel.

It said it would focus on Royale Chulan KL to capture the KL market.

“Royale Chulan Bukit Bintang offers good prospects, given its strategic location in one of the prime tourist areas and hotel belts of KL’s city centre. With this attractive offer price, we are of the view that this is the right time to dispose of this hotel,” a spokesperson from Boustead said in a statement.

The proposed sale consideration was reached on a willing-seller-willing-buyer basis.

The letter of offer is subject to terms and conditions, among them, an exclusive period of one month to conduct the necessary due diligence on Royale Chulan Bukit Bintang, and the execution of the sales and purchase agreement (SPA) within this period.

The company told Bursa Malaysia in a filing yesterday that the purchaser had paid a sum of RM3.94 million, being the 2% earnest deposit of the purchase.

In the event that the SPA is not executed for any reason, the earnest deposit shall be refunded in full to the purchaser within 14 days from the date of the purchaser’s written demand to Boustead.

The Singaporean company has been busy purchasing assets in KL. A local daily recently reported that the Employees Provident Fund has sold Wisma KFC on Jalan Sultan Ismail, KL, to Singapore- based property developer and manager Royal Group.

The financial daily said the 22-storey office building, which is believed to have been sold
for about RM130 million, may be turned into a hotel.

Another local newspaper had also reported that the W Hotel is for sale, with owner Tropicana Corp Bhd believed to be seeking RM360 million, sources said.