Posted on 22 Jul 2015
Yesterday, BCorp entered into an subscription agreement with Berjaya Land Bhd (BLand) and BKyoto, which will result in dilution of BLand's equity interest in BKyoto from 100% to 50%.
In a filing with the stock exchange, Berjaya Corp said in conjunction with the proposed subscription, it will undertake to advance up to RM152.74 million to BKyoto for the purposes of working capital and proportionate settlement of the inter-company loan with BLand.
BKyoto is involved in the development of resort hotel and residences. It is currently developing the Four Seasons Hotel & Residences in Kyoto, Japan comprising a 123-room hotel and 57 units of residences with an estimated development cost of about JPY33.69 billion (RM1.05 billion).
The project is expected to be completed by the third quarter of 2016. It is now 45% complete.
"The proposals will provide an opportunity for BCorp to invest directly and own the Four Seasons Project, an iconic luxury hotel and residences in Japan thereby increasing its landbank and portfolio of the properties owned, which also includes the luxury residences 'The Ritz-Carlton Residences' in Malaysia to be marketed and managed by Ritz-Carlton Hotel," it said.
BCorp said the proposals, which are expected to be completed by third quarter of 2015, is expected to contribute positively to its future earnings upon completion of the Four Seasons project.
