‘No concrete plan for Mutiara Beach Resort’

By Sharen Kaur
Published in NST on April 14, 2014

25-YEAR-OLD PROPERTY: Tradewinds focusing on mega projects in Langkawi, KL

TRADEWINDS Corp Bhd, may only look at redevelopment plans for Mutiara Beach Resort in Penang next year, said a key official.

“We have too much on our plate to start planning now, with two major ongoing projects in Langkawi and the large developments in Kuala Lumpur. We are focusing on these mega projects,” the official said.

According to him, the Penang resort project has not reached the drawing board and there is no concrete plan as to what the company may want to do there. 

“Of course, the best thing is to have more rooms so that there will be a good return on investment. Whether we sell the property or not would depend on the market situation and the offers,” he said.

The 25-year-old property, which is located on 4.05ha in Jalan Teluk Bahang, has been closed since 2006.  There were earlier plans to renovate and rebrand the property as InterContinental Resort Penang.

However, both Tradewinds and InterContinental mutually terminated the management contract in early 2009.

Tradewinds, which owns eight hotels and resorts, is developing the RM4 billion Perdana Quay and the Burau in Langkawi for RM420 million.

In Kuala Lumpur, Tradewinds' existing projects include the upgrading of Menara Tun Razak and the development of Tradewinds Centre in Jalan Sultan Ismail, both of which are projected to cost more than RM4 billion.

The group is demolishing the 40-year-old Crowne Plaza Mutiara Hotel and 33-year-old Kompleks Antarabangsa to make way for the Tradewinds Centre, which has an estimated gross development value of more than RM7 billion.

Tradewinds has said it will redevelop the 2.8ha site on its own over seven years.

The project will comprise a 65-floor skyscraper and 54-storey bloc of residences, Grade A+ offices, a 24-storey corporate block, a large-scale 14-storey medical centre, retail offices, serviced apartments and hotel.

At Menara Tun Razak, Tradewinds is upgrading the 35-storey office tower and constructing a new 40-storey office tower adjacent to it.

“Tradewinds’ financial results will improve tremendously from next year as property sales from some of the projects start to kick in,” the official said.

Its last financial results for the six months ended June 30, 2013, showed that it made RM75.44 million in net profit from RM474.57 million in revenue.  Its total assets stood at RM3.6 billion.

The 25-year-old Mutiara Beach Resort in Penang has been closed since 2006.