IGB in no hurry to sell Renaissance KL Hotel

KUALA LUMPUR: IGB Corp Bhd, which saw its net profit for the first quarter ended March 31, 2016 fall 20.5%, is not in a hurry to dispose of its 20-year-old Renaissance Kuala Lumpur Hotel.
"The sale has not been consummated. We just got an offer from a party and we are still reviewing the offer," group managing director Datuk Seri Robert Tan Chung Meng told reporters after its AGM yesterday.
He declined to give details beyond saying that it has not signed any agreement.
"We are always looking at offers. Once we have an offer, we have to look at it and see whether it is something that we want to accept. Until such time that a sale and purchase agreement is signed, we cannot disclose," he said.
A business daily reported yesterday that the group is in talks with a Singapore company for the possible sale of the hotel for almost RM800 million.
Tan said if the sale happens, the group will use the proceeds to fund its Mid Valley Southkey Megamall project in Iskandar, Johor.
"We won't have to borrow so much for the Southkey project. We're talking about RM1 billion there. It is a big 'if'. It's not a secret that we've been looking for a buyer for that hotel because it is not yielding. Whatever assets that's not yielding we are trying to dispose of and put the money to better use," he added.
IGB's net profit slumped to RM51.8 million for the first quarter from RM65.14 million a year ago, on lower contributions from its property development and property investment divisions. Revenue for the quarter fell 16% to RM280.2 million from RM334.3 million a year ago.