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Thursday, May 28, 2009

IGB plans more hotels abroad

KUALA LUMPUR: IGB Corp Bhd is in talks with 10 parties on developing hotels in Vietnam, China, Thailand and Australia.

Group managing director Robert Tan said the development might be in the form of joint venture, asset management or to wholly-own the entity itself.

“The hotels will carry the brand of either St Giles or Cititel but no deals have been closed at the moment,” he told a press conference after the company AGM yesterday.

Tan said the talks were mostly focused on hotel development, while some deals might involve taking over and developing uncompleted buildings.

“We have started the construction of St Giles Hotel in the Philippines and it is expected to be completed by the first quarter of next year,” he said.

He said the hotel might be a 50:50 joint venture between IGB Corp and associate company St Giles London but the latter was currently financing the US$50mil project.

The hotel division now contributes about 30% to IGB Corp’s net profit.

Tan said the company had delayed a few projects, such as Stonor and Mid Valley Parcel 3, this year.

“They carry a total gross development value of RM1.5bil to RM2bil,” he said.

Stonor is a condominium in Kuala Lumpur while Parcel 3 is a commercial development.

On talks of selling its Renaissance Hotel in Kuala Lumpur, Tan said IGB was still pursuing the deal and the asking price was around RM800mil.

However, he said, it had not received any “serious” offer yet.

He said IGB was also considering disposing its MiCasa All-Suite Hotel, which was currently closed for refurbishment and scheduled to open in October.

“We are always open to offers. The value of the hotel will be about RM200mil after the refurbishment,” he added.

By The Star

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