By Sharen Kaur
Published in NST on July 9, 2014
KUALA LUMPUR: KUB Malaysia Bhd will be compensated for the closure of Hotel Singgahsana in Petaling Jaya, Selangor, which may be demolished next year to make way for a massive project.
Managing director Datuk Wan Mohd Nor Wan Ahmad said the company will receive compensation for the remaining 10-year concession to operate the hotel.
The cessation of Hotel Singgahsana, or KUB Singgahsana (PJ) Sdn Bhd, which is KUB's 100 per centowned unit, was effective from January 1.
"We will be compensated for the 10 years that we are not able to operate the hotel. The amount is small and we will receive the compensation by the end of this year," he told Business Times after the company's shareholders meeting, here, recently.
Hotel Singgahsana is standing on a 11.6ha government land adjacent to the RM3 billion PJ Sentral project being undertaken by Malaysian Resources Corp Bhd (MRCB).
The plot, also home to Petaling Jaya Magistrate Court and the Chemistry Department, has a potential gross development value (GDV) of more than RM7 billion.
Business Times reported recently that MRCB is targeting the 11.6ha government land under a possible privatisation deal to expand the PJ Sentral project.
Analysts said Hotel Singgahsana's closure will improve KUB's balance sheet.
"We understand that KUB has been losing around RM3 million a year from the hotel operation, dragging down its overall earnings. Now that it is closed for good, KUB will have a bit more in its pocket to count on," they said.
In 2008, KUB did try to cash out from the hotel operation by selling it to Eden Inc Bhd for RM3.5 million. The deal was aborted due to commercial reasons.
Meanwhile, Wan Mohd Nor is confident KUB will double its pretax profit this year as it diversifies and hives off non-core assets.
For its fiscal year 2013, the company posted a pre-tax profit of RM7.5 million and an operating profit of RM7.7 million.
Published in NST on July 9, 2014
KUALA LUMPUR: KUB Malaysia Bhd will be compensated for the closure of Hotel Singgahsana in Petaling Jaya, Selangor, which may be demolished next year to make way for a massive project.
Managing director Datuk Wan Mohd Nor Wan Ahmad said the company will receive compensation for the remaining 10-year concession to operate the hotel.
The cessation of Hotel Singgahsana, or KUB Singgahsana (PJ) Sdn Bhd, which is KUB's 100 per centowned unit, was effective from January 1.
"We will be compensated for the 10 years that we are not able to operate the hotel. The amount is small and we will receive the compensation by the end of this year," he told Business Times after the company's shareholders meeting, here, recently.
Hotel Singgahsana is standing on a 11.6ha government land adjacent to the RM3 billion PJ Sentral project being undertaken by Malaysian Resources Corp Bhd (MRCB).
The plot, also home to Petaling Jaya Magistrate Court and the Chemistry Department, has a potential gross development value (GDV) of more than RM7 billion.
Business Times reported recently that MRCB is targeting the 11.6ha government land under a possible privatisation deal to expand the PJ Sentral project.
Analysts said Hotel Singgahsana's closure will improve KUB's balance sheet.
"We understand that KUB has been losing around RM3 million a year from the hotel operation, dragging down its overall earnings. Now that it is closed for good, KUB will have a bit more in its pocket to count on," they said.
In 2008, KUB did try to cash out from the hotel operation by selling it to Eden Inc Bhd for RM3.5 million. The deal was aborted due to commercial reasons.
Meanwhile, Wan Mohd Nor is confident KUB will double its pretax profit this year as it diversifies and hives off non-core assets.
For its fiscal year 2013, the company posted a pre-tax profit of RM7.5 million and an operating profit of RM7.7 million.
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