KUALA LUMPUR, Sept 11 -- Impiana Hotels Bhd has made an en bloc sale of 146 serviced suites in Impiana Resort and Residences Cherating, Pahang, to Silver Max Asia Pacific Labuan Ltd for about RM146 million.
Concurrent with the inking of the sale and purchase agreement today, Impiana's wholly-owned subsidiary Impiana Cherating Sdn Bhd (ICSB) also signed a lease management agreement whereby Silver Max would lease the units back to ICSB for a minimum of 10 years.
The 146 suites are part of the 257 units available for sale under Phase 1 of the development of the 12.14-hectare Impiana Resort and Residences Cherating with a gross development value (GDV) of RM230 million, said Impiana Hotels executive director Azrin Kamaluddin.
The development of Phase 1, which began in October last year, is expected to be completed in 36 months.
“To date, about 30 per cent of the development has been completed, and most probably it could be completed earlier than the set target.
“We expect the resort to reopen in late 2020 or early 2021,” he told reporters after the signing ceremony here today.
He said the entire development comprised three phases with a total GDV of RM413 million. The first two phases consist of primary resort units with a sale and leaseback arrangement as well as villas which are not for sale.
Phase 3, meanwhile, will comprise luxury residential units. He said this was still at the design stage with construction projected to begin in the second half of 2020.
As for the first phase, Azrin said after the en bloc sale and some retail sale, only about 90 units would be left for sale, which validated the potential of the resort as a good investment destination.
“The leaseback arrangement is a new asset class by itself and it could give not only a good yield but also capital appreciation,” he said.
On the leaseback arrangement with Silver Max, he said for the first five years, the company would be given a profit guarantee of five per cent of the total sales which would be paid quarterly, and after the five years, it would go by profit sharing.
Moving forward, he said Impiana Cherating was expected to contribute about half to the top and bottom lines of the group.
The group also believed that the sale and leaseback arrangement is a good business model for the group and could be replicated in its other greenfield land in such as in Pangkor Island and Langkawi.
On its expansion plan, he said Impiana was looking to expand outside the Southeast Asian region. It has signed a management agreement for a hotel in South Korea and two more agreements are in the pipeline.
Azrin said the group would also continue to look for more acquisitions, noting that it would evaluate about three to four proposals monthly with a strike rate of one in 20.
Meanwhile, Silver Max director Alfonso Hin Ming Chu said the group was positive on its investment in Impiana Cherating, which could provide a steady yield.
“We are optimistic this will be a winning choice and a sound investment and look forward to more opportunities as Impiana continues on its growth path,” he added.