KUALA LUMPUR (July 17): Real estate and hospitality investor group Mulpha International Bhd is disposing of its Rydges Esplanade Resort in Cairns, Australia to JY Cairns Esplanade Hotel Pty Ltd for A$65 million (approximately RM187.91 million) cash.
In a filing with Bursa Malaysia today, Mulpha said the 31-year-old property is a 4-star hotel with 242 guest rooms, occupying 7,444 sq m. As at Dec 31, 2018, the audited net book value of the property stood at A$35.8 million.
Mulpha said the property was acquired on Dec 20, 2016 and its original cost of investment including incidental costs was A$42.3 million.
Based on the sale price of the property, the proposed disposal is expected to result in a net gain after tax of A$14.9 million after deducting the performance obligation, agency commission, legal and all incidental costs.
Mulpha said the proposed disposal will enable it to unlock the value of the property and generate cash for the group.
Mulpha plans to utilise the A$64 million for repayment of bank borrowings, performance guarantees and capital expenditure reimbursement, as well as working capital requirements.
Barring any unforeseen circumstances the proposed disposal is expected to be completed by the fourth quarter of 2019.
Shares of Mulpha today closed down 3 sen or 1.38% at RM2.14 for a market capitalisation of RM683.66 million.