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KUALA LUMPUR (Dec 14): Ivory Properties Group Bhd acquired Copthorne Orchid Hotel & Resort in Penang for RM 75 million in cash to expand its land bank and strengthen its presence in the real estate market there.
The hotel is on a fully owned parcel of land measuring 2.5 acres and has ceased operations.
Ivory Properties said it is purchasing the property on behalf of its wholly owned subsidiary, Ivory Utilities Sdn Bhd. Both Ivory Properties and Copthorne Orchid Penang Sdn Bhd signed the purchase agreement for the acquisition today, the group’s stock exchange presentation showed.
Copthorne Orchid Penang is an indirect wholly owned subsidiary of the company listed on the Singapore Exchange Main Board, City Development Ltd.
Ivory Properties said it plans to develop a hotel and serviced apartments on the land with a gross development value of RM410 million. Development is expected to begin in 2022 and take three to four years to complete.
Barring unforeseen circumstances, the company expects the proposed acquisition to be completed by the second quarter of 2021.
Ivory Properties’ share price was unchanged at 14.5 sen at noon after some 261,600 shares were traded. Its market capitalization stood at RM71.06 million.
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