Singapore firm obtains majority stake in Melaka project from Hatten Land as part of US$323m deal

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KUALA LUMPUR (Aug 12): Singapore-based firm Tayrona Capital Pte Ltd is obtaining a 99% stake in real estate developer Hatten Land Ltd’s Harbour City mixed development in Melaka as part of a US$323 million deal.

In a statement, Hatten Land — which is listed on the Singapore Exchange (SGX) — said the agreement with Tayrona Capital will see the latter invest US$23 million in Hatten Land’s unit Gold Mart Sdn Bhd, which is developing Harbour City, through the issuance of new shares which allows Tayrona Capital to obtain a 99% stake in the company.

Tayrona Capital will also be injecting a further US$240 million to “improve and to complete the development and marketing of Harbour City”, said Hatten Land in a statement.

“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,” said the property developer.

The group said the proceeds of US$60 million will strengthen its balance sheet and “provide greater financial flexibility to pursue new growth initiatives”.

According to the statement, as at March 31, 2020, Hatten Land’s net assets and net current assets stand at RM370 million and RM307 million respectively.

The developer also has about RM1.3 billion worth of unsold completed properties.

An extraordinary general meeting will be convened by Hatten Land to seek shareholders’ approval for the proposed transaction.

Hatten Land executive chairman and managing director Datuk Colin Tan said: “We are thrilled that the Tayrona Capital recognises the potential of Harbour City and shared 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,” he added.

Meanwhile, Tayrona Capital chief executive officer James Ordonez said Harbour City’s avant-garde design and innovative concept is a strategic fit to Tayrona Capital’s portfolio of global hospitality assets.

“We look forward to working closely with Hatten Land to create new tourism and economic opportunities in Melaka from this project,” he added.

Harbour City is a themed development that comprises the thematic Harbour City Mall, Melaka's largest 'Sky' water theme park at 500,000 sq ft, as well as a luxury hotel.

According to the statement, Tayrona Capital — which is part of the Tayrona group that is involved in hospitality and investments — is interested in acquiring and completing the project as an addition to its Sagana Hotels & Resorts network of 32 hotels or resorts worldwide, and Ultra Luxury Integrated Destinations Collection which currently has operations and developments in 22 countries.