KUALA LUMPUR (Dec 7): YTL Corp Bhd is buying Spanish firm SOL HTL Project, which owns a freehold property in Madrid that will be refurbished and converted into a 200-room hotel that will operate under the Marriot International Inc's EDITION brand, for euro 220 million (equivalent to RM1.038 billion).

YTL Corp said in a stock exchange filing today that the price tag includes payment for loans that SOL HTL owes to the seller of the company, KKH Property Investors SLU. The acquisition is expected to be funded by borrowings and/or internal funds.

"The proposed acquisition is in line with YTL Corp Group’s geographical diversification and expansion of the group’s revenue base, through greenfield developments and strategic acquisitions. The luxury hotel segment in Madrid is growing and the proposed acquisition will enable YTL Corp Group to enter this market via a strategically-located hotel which will be operated under the EDITION brand of Marriott Group," the filing read.

YTL Corp's wholly-owned unit YTL Hotels & Properties Sdn Bhd inked a sale and purchase agreement (SPA) for the buy on Thursday. YTL is party to the SPA as a guarantor to YTL Hotels & Properties' obligations.

The property is located at Plaza de Celenque No. 2, 28013, and currently forms part of a building which also houses the Fundación Obra Social y Monte de Piedad de Madrid.

"The proposed acquisition is targeted to be completed during the financial year ending 30 June 2021 [FY21]," YTL Corp said.

YTL Corp shares closed unchanged at RM1.05 today, after 1.27 million shares were traded, giving it a market capitalisation of RM11.46 billion.