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ABR Holdings to buy 50% of Bintan Lagoon Resort
ABR Holdings said on Tuesday its wholly-owned subsidiary, ABR Land, has entered into an agreement to buy 50 per cent of Bintan Lagoon Resort for S$65 million in cash.
ABR runs chains such as Swensen's and Yogen Fruz here, but has been diversifying into property in recent months. In September, it acquired a 1,179.83 sq m plot in Kuala Lumpur for RM3.556 million (S$1.1 million).
Bintan Lagoon Resort comprises a 413-key resort hotel, two 18-hole championship golf courses, 58 villas and leisure and food and beverage facilities, and sits on a site measuring approximately 311 hectares of land.
In connection with the proposed acquisition, the vendor, Resort Venture, will incorporate a company in Singapore to support the operations and business of the resort.
This new company, Singapore Management Co, will apply for a travel agent licence to be issued by the Singapore Tourism Board and a regional ferry services operator licence to be issued by the Maritime and Port Authority of Singapore.
Resort Venture is a company incorporated in Singapore and its principal business activity is investment holding. It is controlled by businessman Khua Kian Keong and real estate firm Pacific Star Holdings.
ABR said in a filing on the Singapore Exchange that the proposed acquisition is in line with its strategic plans and ongoing efforts to expand into selective property development businesses and pursue new investment opportunities.
"The resort will diversify the group's property portfolio. In addition, the resort resides on a site with approximately 150 hectares of undeveloped land, which has potential for development in the future," it said.
ABR shares closed unchanged at S$0.80 on Tuesday.