KUALA LUMPUR (Dec 14): Ivory Properties Group Bhd has acquired Copthorne Orchid Hotel & Resort in Penang for RM75 million cash to expand its land bank and strengthen its foothold in the property market there.
The hotel sits on a parcel of freehold land measuring at 2.5 acres, and has ceased operations.
Ivory Properties said it is buying the property on behalf of its wholly-owned subsidiary company, Ivory Utilities Sdn Bhd. Both Ivory Properties and Copthorne Orchid Penang Sdn Bhd have inked the sale and purchase agreement for the acquisition today, the group’s bourse filing showed.
Copthorne Orchid Penang is an indirect wholly-owned subsidiary of Singapore Exchange’s Main Board listed company, 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. The development is expected to commence in 2022 and be developed over a span of three to four years.
Barring any 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 break after some 261,600 shares were traded. Its market cap stood at RM71.06 million.