PETALING JAYA: Singapore-listed developer Hatten Land Ltd has signed an agreement with Tayrona Capital Pte Ltd relating to the Harbour City project in Malacca, which is held under Gold Mart Sdn Bhd, in a US$323 million (RM1.36 billion) transaction.
Incorporating elements of retail, hospitality and entertainment within an integrated mixed development, Harbour City aims to transform Malacca’s tourism and entertainment landscape. The marine-themed mixed development comprises the thematic Harbour City Mall, Malacca’s largest “sky” water theme park of 500,000 square feet as well as luxury hotel.
Under the agreement, Tayrona Capital will invest US$23 million in Gold Mart via the issuance of new shares, allowing Tayrona Capital to obtain a 99% equity stake in Gold Mart. In addition, Tayrona Capital will inject US$240 million to improve and to complete the development and marketing of Harbour City.
As the concept originator and project developer of Harbour City, Hatten Land will assign various intellectual property such as project design and concept, domain names, internet site and marketing materials to Tayrona Capital for a consideration of US$60 million.
As at March 31, 2020, Hatten Land had net assets and net current assets of RM370 million and RM307 million respectively. In addition, the group has RM1.3 billion of unsold completed properties.
The company will be convening an EGM to seek shareholders’ approval for the proposed transaction.
Hatten Land executive chairman and managing director Datuk Colin Tan said the transaction is a testament to its ability in creating innovative property concepts, developing quality property assets and unlocking value.
“We are thrilled that the Tayrona Capital recognises the potential of Harbour City and shared our optimism for the long-term prospects in Malacca. With Tayrona Capital’s international track record and expertise in hotel development and hospitality management, there are strong potential and synergies for both companies to collaborate together in other projects in Malacca moving ahead.
“The proceeds from the transaction will strengthen the group’s balance sheet and provide us with greater financial flexibility to pursue new growth initiatives.”
Tayrona Capital CEO James Ordonez said Harbour City’s design and innovative concept is a strategic fit to its portfolio of global hospitality assets.
“We look forward to work closely with Hatten Land to create new tourism and economic opportunities in Malacca from this project.”
