Acoustech to develop luxury hotel, affordable apartments in Melaka with GDV of RM80.5m

KUALA LUMPUR (Dec 29): Acoustech Bhd plans to develop a five-storey luxury hotel and a block of affordable serviced apartment worth a combined gross development value (GDV) of RM80.5 million on two pieces of land in Melaka.

In a filing with Bursa Malaysia yesterday, Acoustech said its wholly-owned subsidiary Teras Eco Resources Sdn Bhd (TERSB) has executed two Memoranda of Understanding (MoUs) for the proposed projects.

One is with Innocashz (M) Sdn Bhd to form a joint venture (JV) to jointly develop the hotel with an expected GDV of RM40 million on 1.2 acres of the Customs Immigration and Quarantine (CIQ) land, which is located by the riverbank of Sungai Melaka and within 15 minutes from Jonker Walk. Innocashz owns the CIQ land, which is presently charged to Public Bank Bhd.

Another MoU is with Goldsand JV Sdn Bhd to form a JV to build 152 units of affordable serviced apartment on 3.9 acres of leasehold land in Krubong, Melaka. Dubbed "Melaka Residences", it has an estimated GDV of RM40.5 million.

Acoustech said the MOU with Innocashz grants an exclusive option to TERSB for the development of CIQ land into a luxury hotel or such other development as TERSB may deem fit.

"The MoU has a validity of six months, with an automatic extension of another six months. During the period of the MoU, Innocashz will not, without prior approval of TERSB, solicit offers for the CIQ land or negotiate with any person or entity or grant any interest in the CIQ land," it added.

Under the JV, it contemplates for Innocashz to be entitled to 30% of gross profit from the Melaka hotel project, with the balance entitlement due to TERSB.

Acoustech said the Melaka hotel represents a potential for the group to enhance its development order books and gain entry into the hospitality industry within the historical state of Melaka.

"Management believes that the CIQ land’s proximity to the major attractions of the historical state, the proposed Melaka hotel will benefit from the growing influx of tourists and demand for hotel occupancy within Melaka city," it added.

Meanwhile, the MoU with Goldsand grants an exclusive option to TERSB for the development of the Krubong land located about 15km away from the city of Melaka, into 152 units of apartment residences or such other configuration as TERSB may deem fit.

The MoU also has a validity of six months, with an automatic extension of another six months.

The JV also contemplates for Goldsand to be entitled to 30% of gross profit from the Melaka Residences project with the balance entitlement due to TERSB.

"The management intends to construct the Melaka Residences under the affordable housing concept in line with the government’s housing scheme known as Perumahan Penjawat Awam 1Malaysia Jabatan Perdana Menteri," Acoustech said.

"Subject to the approval of the relevant authorities, the development of the Melaka hotel and the Melaka Residences is expected to take three years to complete," it added.

Acoustech shares closed up 0.5 sen or 1.1% at 46 sen yesterday, with 196,400 shares done, bringing a market capitalisation of RM76.88 million. — theedgemarkets.com

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