|- Company to receive USD$60 million for assignment of Intellectual Property related to Harbour City|
- Proceeds to strengthen Group's balance sheet, provide financial flexibility to pursue new initiatives
SINGAPORE, Aug 12, 2020 - (ACN Newswire) - Hatten Land Limited (SGX:PH0), the leading developer in the Malaysian city of Melaka, is pleased to announce that it has signed an agreement with Tayrona Capital Pte Ltd relating to the Harbour City project, which is held under Gold Mart Sdn. Bhd., in a US$323 million transaction.
Incorporating elements of retail, hospitality and entertainment within an integrated mixed development, Harbour City aims to transform Melaka's tourism and entertainment landscape. The marine-themed mixed development comprises the thematic Harbour City Mall, Melaka's largest 'Sky' water theme park of 500,000 square feet as well as luxury hotel.
As a UNESCO World Heritage Site, Melaka is Malaysia's second-most visited destination after Kuala Lumpur, and has been rated among Lonely Planet's Top 10 must-visit destinations in the world.
Tayrona Capital is part of the Tayrona group of companies headquartered in Singapore. Tayrona group is in the business of hospitality and investment and Tayrona Capital is interested to acquire and complete Harbour City as an addition to its Sagana Hotels & Resorts network of 32 hotels/resorts worldwide, and Ultra Luxury Integrated Destinations Collection which currently has operations and developments in 22 countries.
Under the agreement, Tayrona Capital will invest US$23 million in Gold Mart via the issuance of new shares, allowing Tayrona Capital to obtain a 99% equity stake in Gold Mart. In addition, Tayrona Capital will inject US$240 million to improve and to complete the development and marketing of Harbour City.
As the concept originator and project developer of Harbour City, Hatten Land will assign various intellectual property such as project design and concept, domain names, internet site and marketing materials ("Intellectual Property") to Tayrona Capital for a consideration of US$60 million.
As at 31 March 2020, Hatten Land had net assets and net current assets of RM370 million and RM307 million respectively. In addition, the Group has approximately RM1.3 billion of unsold completed properties.
The Company will be convening an Extraordinary General Meeting to seek shareholders' approval for the proposed transaction.
Dato' Colin Tan, Executive Chairman and Managing Director of Hatten Land, said: "The transaction is a testament to our ability in creating innovative property concepts, developing quality property assets and unlocking value.
"We are thrilled that Tayrona Capital recognises the potential of Harbour City and shares our optimism for the long-term prospects in Melaka. With Tayrona Capital's international track record and expertise in hotel development and hospitality management, there are strong potential and synergies for both companies to collaborate together in other projects in Melaka moving ahead.
The proceeds from the transaction will strengthen the Group's balance sheet and provide us with greater financial flexibility to pursue new growth initiatives."
Mr James Ordonez. CEO of Tayrona Capital, added: "Harbour City's avant-garde design and innovative concept is a strategic fit to our portfolio of global hospitality assets. We look forward to work closely with Hatten Land to create new tourism and economic opportunities in Melaka from this project."
Issued on behalf of Hatten Land Limited by 8PR Asia Pte Ltd.
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Topic: Press release summary
Source: Hatten Land Ltd
Sectors: Daily Finance, Real Estate, Travel & Tourism, Daily News, Construct, Engineering
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