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Monday, June 4, 2012

Mutiara Burau Bay Resort to stop ops?

HOTEL DEVELOPMENT: New owners said to be planning four- and five-star resorts on existing site and adjoining plot of land

The three-star Mutiara Burau Bay Resort (MBBR) in Langkawi is said to be closing down, as part of efforts by its new owners to build a new resort in its place.

Business Times has learnt that the 150-room resort, which commands a stunning beachfront, is expected to cease operations by the end of this year.

This is following a reported sale by its old owners the Langkawi Development Authority (LADA) to Langkawi Tradewinds Corp Bhd (TCB), a company controlled by businessman Tan Sri Syed Mokhtar Al-Bukhary.

It is also learnt that two resorts - one four-star and another five-star - will be constructed on the land where MBBR is sited, along with an adjoining plot of land.

LADA chief executive officer Tan Sri Khalid Ramli did not respond to emailed questions from Business Times on this development.

TCB has been operating and managing the resort for LADA.

On March 12, TCB announced that its indirect wholly-owned subsidiary, Benua Mahsuri Sdn Bhd (BMSB), had entered into a lease agreement with LADA for a cash consideration of RM34.7 million.

The lease agreement stated that over 14 hectares of Malay reserved land (also referred to as leasehold land) located in Mukim Padang Matsirat, Langkawi, will be leased out by LADA for 81 years from January 2013 to 2093.

TCB stated on its website that the lease agreement is subject to BMSB obtaining declaration from the relevant state authority and that the leasehold land would be handed over to BMSB on January 1 2013 and the company is set to start constructing a new hotel within three years from the date of the lease agreement.

Without stating the costs involved, TCB stated that construction costs will be in line with acceptable industry standards. The construction of the hotel will be funded from a combination of internally generated funds and external borrowings.

TCB now owns luxury hotel The Danna and adjoining Perdana Quay development where the Telaga Harbour marina is located.

Sources say that the empty plot of land between The Danna and MBBR is likely to see the construction of one of the two new resorts being planned by TCB.

By Business Times

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