IGB unit to sell Renaissance Hotel in KL

IGB-Corp-BhdKUALA LUMPUR: IGB Corp Bhd’s wholly-owned unit, Great Union Properties Sdn Bhd, has signed a conditional sale and purchase agreement with Ventura International Sdn Bhd to dispose of Renaissance Kuala Lumpur Hotel for RM765 million.

In a filing to Bursa Malaysia today, IGB said the divestment represented an attractive opportunity for it to unlock business assets at a favourable price.

“IGB intends to use the proceeds for working capital and to support its continued growth for suitable acquisitions or investments when such opportunity or opportunities arise,” it said.

The hotel commenced operations in mid-1996 with an original investment of RM506.6 million and based on the latest audited financial statements as at Dec 31, 2015, the net book value of the hotel was RM667.2 million.