Berjaya Land Bhd (BLand) says it has received a USD10 million discount from Icelandair Group for the purchase of 75 per cent stake in Icelandair Hotels due to the temporary adverse economic effects of the Covid-19 outbreak.
The developer is acquiring the stake in Icelandair Hotels, as well as certain hotels and real estate assets for USD55.31 million (or RM222.03 million), of which, a total of USD35 million has already been paid to the seller.
In a filing with Bursa Malaysia, BLand said the amount of the discount has been netted off against the outstanding balance of USD20.31 million.
BLand said the final net balance due amounting to USD10.31 million was paid on 3 April 2020 and the acquisition was completed on even date.
Icelandair Hotels, which has an enterprise value of US$136 million, operates 20 hotels across Iceland with a total of 1,811 rooms.
Its real estate is estimated at 17,738 sq m (or 1.78ha) and includes Hilton Canopy Reykjavik, Icelandair Hotel Akureyri, Icelandair Hotel Mývatn, and Icelandair Hotel Hérað.
In 2018, the aggregate revenue of the Icelandair Hotels amounted to USD97 million. Its aggregate earning before interests, taxation, depreciation, and amortisation amounted to USD12 million.
The Iceland deal will complement BLand's existing portfolio of city and resort hotels located in Malaysia, Vietnam, the Philippines, Japan, Sri Lanka, Seychelles, and the UK.
Berjaya Group executive chairman Tan Sri Vincent Tan said previously that this investment represents good long term value for Berjaya Group.