Berjaya Corp Bhd (BCorp) is selling its trophy asset, the Four Seasons Hotel & Hotel Residences Kyoto in Japan to Godo Kaisha Tigre (Tigre) and expects to gain more than RM600 million from the disposal.
BCorp said its subsidiary, Kyoto Higashiyama Hospitality Assets Tokutei Mokuteki Kaisha (KHHA) has entered into a real property trust beneficial interest purchase and sale agreement to dispose the property to Tigre, a Japanese firm, for about RM1.87 billion.
NST Property had reported that BCorp was looking to sell the five-star hotel for between RM1.25 billion and RM1.65 billion and would only dispose of the property upon getting a good deal and arrangement with the prospective buyer.
BCorp's controlling shareholder and executive chairman Tan Sri Vincent Tan said the disposal provides an opportunity for the BCorp group to monetise its investments in the hotel at a very attractive price.
“I am happy to dispose of this hotel which is only about 3½ years old for a huge gain," said Tan in a statement today.
Tan said, together with the 23 units of the Four Seasons Kyoto residences which were already sold and the estimated profit from the potential sale of the remaining 34 units of the residences, the BCorp group is expecting to realise a total net gain of about RM1.55 billion with gross cash inflows surpassing RM3.22 billion for the entire Four Seasons Hotel and Residences project in Kyoto.
The hotel disposal is targeted to close in mid-March 2020, he said.
Another unit of BCorp, Berjaya Kyoto Development Kabushiki Kaisha (BKD) will leaseback the hotel from Tigre for 17 years, in order to maintain the present arrangements and operations of the hotel.
Both KHHA and BKD are 100 per cent-owned subsidiaries of Berjaya Kyoto Development (S) Pte Ltd, which in turn is held by BCorp and its listed subsidiary namely Berjaya Land Bhd, with each holding 50 per cent equity interest.
The five-storey hotel commenced operations in 2016. It has 123 hotel rooms and is touted as the best hotel in Kyoto and the top three in Japan.
In 2019, it boasts an average room rate of US$1,500 per night.
The hotel is located within close proximity of tourist attractions such as the Kyoto National Museum, Kiyomizu-dera Temple, Sanjusangendo Temple, Chishakuin Temple and Myohoin Temple.
Besides the hotel, the BCorp group also developed 57 units of branded residences (Four Seasons Kyoto residences).
BCorp clarified that these residences are not part of the hotel disposal.