Impiana, Silver Max sign sales and leaseback agreement for service apartments

KUALA LUMPUR: IMPIANA Hotels Bhd (IHB) is positive of the transformation of Cherating, a beachfront destination in Pahang, into a world class destination for local and international tourists, banking on the East Coast Rail Link (ECRL) project and more flights landing at the in Kuantan airport.

The hotelier also believes its beachfront serviced apartment — Impiana Resort & Residences Cherating, which currently has only about 90 units out of 257 units, will have a good take up rate by end of this year.

IHB’s subsidiary, Impiana Cherating Sdn Bhd that operates Impiana Resort & Residences Cherating, signed a sale and purchase agreement earlier today with Silver Max Asia Pacific Labuan Ltd (SMAP) for an enbloc sale and leaseback of 146 units of serviced suites in Impiana Resort & Residences, Cherating for RM146 million.

Under the deal, SMAP will lease back the 146 units to IHB for five years, subject to an automatic extension of five years, with option to extend the lease mutually by both parties for another five-year. IHB also signed another agreement to allow SMAP to manage and maintain the 146 units.

IHB executive director Azrin Kamaluddin said the deal marks a milestone for the group and recognition of Impiana Cherating’s prospects as a destination of choice and sound investment.

“We hope to do our part in elevating Cherating to become a world class tourist destination and SMAP’s purchase validates investors’ confidence in our resort,” he said at a press conference, here.

He said with the ECRL station and more international flights landing at the Kuantan airport, Cherating will become more well known.

The project started construction in October last year with a gross development value (GDV) of RM203 million, while the second and third phase have a GDV of RM100 million and RM110 million respectively.

All three phases of the project will be built on a 12.14ha site.

The group is targeting to finish phase one by 2021 or early 2022.

He said the first two phases consist of primary resort units with a sale and leaseback arrangement, while the villas under phase one and two are not for sale. Luxury residential units will be built in phase three of the development.

“This SPA is expected to contribute positively towards the future earnings of IHB,” he said.

SMAP director Alfonso Chu is positive of IHB is as an ideal partner and that the company’s investment in Impiana Cherating would provide steady yields.

“With the development located in such a prime location and Impiana’s 25 years of success as an international hotelier, we are optimistic this is a winning choice and sound investment”, he said.

Source: NST