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Saturday, July 11, 2009

SunCity expects to conclude hotel buy soon

PROPERTY developer Sunway City Bhd (SunCity) expects to conclude the purchase of the US$17 million (RM61 million) Sunway Hotel Hanoi in Vietnam by next month or September.

SunCity is buying the property from sister company Sunway Holdings Bhd, which wants to focus on its core business of property development and construction.

The four-star 143-room hotel is managed by Sunway International Hotels and Resorts Sdn Bhd, a unit of SunCity.

The hotel registered 74 per cent room occupancy and sales of US$4.7 million (RM16.8 million) last year.
SunCity chief financial officer Tan Poh Chan said the hotel deal is part of plans to build its investment portfolio division and export its management services.

"We are buying Sunway Hotel Hanoi as it commands good yields and fits into our investment criteria. Since we are already managing the property, we decided to buy it from Sunway Holdings to springboard into other hotel investment and management business in Vietnam," Tan told Business Times in an interview.

Tan added that SunCity aims to ride on Vietnam's expected boom in foreign direct investment, which will spur activities in the tourism industry.

"This may call for the setting up of new hotels in Vietnam. SunCity will be at an advantage since it already operates and manages a portfolio of hotels," he said.

As at March 31 2009, SunCity's total asset value was RM5.2 billion.

At present, it owns five hotels, two shopping malls, university colleges, themeparks and commercial towers, and a medical centre.

It also manages 12 hotels, half of which are in Malaysia and the rest in Phnom Penh, Hanoi and Jakarta under the Sunway and Allson brands.

By Business Times (by Sharen Kaur)

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