Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Friday, July 6, 2012

TA Global to ‘add value’ to its Phuket resort

KUALA LUMPUR: TA Global Bhd, a 74% subsidiary of financial services group TA Enterprise Bhd, is looking into building a new block of hotel rooms for its latest acquisition, Movenpick Karon Beach Resort and Spa in Phuket, Thailand.

Tiah: ‘There is definitely potential to build another block just to cater to the convention business as there is a shortage of rooms during peak season.’

“We believe that we can add value (to this asset) because there is a redevelopment potential,” managing director cum chief executive officer of TA Enterprise Datin Alicia Tiah said.

The hotel, which sits on a piece of 20-acre freehold land, is one of two in Phuket that can hold convention facilities.

“There is definitely potential to build another block just to cater to the convention business as there is a shortage of rooms during peak season,” she said.

She reckoned that with direct flights from India and China to Phuket, the number of tourists would increase.

“We can build something, sell it and put back into the inventory. There are currently four blocks with all rooms sold except for one which does not have a sea view,” she told the media. The hotel, with an occupancy rate 86%, generates a yield of 9.1% according to Tiah.

The company has also gained approval from its shareholder in an extraordinary general meeting to enter a join venture with Birkbeck Trust to develop a hotel and residences building in Vancouver, Canada.

“The current risks for this project are construction risk and selling risk. The construction risk has been mitigated because 60% of the construction contract has been firmed up.

“We don't foresee any great height in the budget because prices of raw material and labour costs are still manageable,” she said.

Tiah expects the company to benefit from this project upon its completion as the market would have recovered by then.

She declined to name any hotels that would anchor the building but revealed that there were “many suitors”.

The building, which will stand as the second tallest in Vancouver, is also the last piece of work by the late Arthur Erickson, a prominent architect in Canada. The estimated gross value of this project is RM1.5bil.

“The basement is done so they will be putting up the structure soon,” she said.

She also revealed that the board had discussed the possibility of setting up a real estate investment trust now that the company held properties that are worth more than RM2bil.

On the group's stock broking business, she said TA Enterprise would be opening its seventh branch in Melaka in August. Tiah said the company would sell more products to raise the bottomline.

On the possibilities of acquisitions and mergers, Tiah said she said was open to join ventures if there were good partners.

By The Star

No comments: