Report: Jati Sutera 'close to' acquiring Tanjung Rhu Resort in Langkawi

KUALA LUMPUR (Dec 21): Jati Sutera Sdn Bhd (wholly owned by Tan Sri Syed Mokhtar Albukhary’s (pictured) Tradewinds Corp Bhd) is close to acquiring the Tanjung Rhu Resort in Langkawi, sources told The Edge Malaysia.

The weekly reported in its latest issue that Jati Sutera is undertaking a due diligence exercise “as a precursor to making an offer” for the 50-acre, 136-room Tanjung Rhu Resort to Bank Pembangunan Malaysia Bhd (BPMB) and the asset’s appointed receivers and managers -- Deloitte Corporate Solutions Sdn Bhd

“Interested parties are currently doing their due diligence. We have our receivers and managers for the deal and they are facilitating the due process,” BPMB president and CEO Arshad Mohamed Ismail was reported saying. He, however, did not confirm or deny the bid by Jati Sutera.

The Edge wrote that “market talk is that the price tag is RM125 million”.

The weekly also “learnt” that some of the interested parties have bid for the resort and the adjoining land and while the others solely for the resort.

The report also stated that “Syed Mokhtar’s offer is not the highest but he seems to be the front runner nevertheless”.

“The question is, can BPMB sell the land alone without the hotel as the prized asset is the sea-fronting portion of the land?

“Gauging from previous attempts to sell the asset, the response seems pretty good. So, is a sale at RM125 million the way to go?” a party familiar with the matter told the business publication.

Another observer said “BPMB should take whatever offer it gets, be it for the hotel or the land”.

“Money in the hand is best,” he said.

A report by IM Property Consultants Sdn Bhd prepared for Tanjung Rhu Land (seen by The Edge) valued the land at RM2.83 billion to RM3.18 billion.

However, it is reported that some portions of the land are swampy, while some still have people living on them and “others could have rivers flowing through them”.

Read the full report in this week’s The Edge Malaysia