ABR Holdings to buy 50% of Bintan Lagoon Resort

Bintan Lagoon Resort comprises a 413-key resort hotel and two 18-hole championship golf courses, among other things.
Bintan Lagoon Resort comprises a 413-key resort hotel and two 18-hole championship golf courses, among other things.PHOTO: BINTAN LAGOON RESORT

ABR Holdings yesterday said its wholly owned subsidiary, ABR Land, has entered into an agreement to buy 50 per cent of Bintan Lagoon Resort for $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$1.2 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. It sits on a site measuring about 311ha.

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.

It said: "The resort will diversify the group's property portfolio.

"In addition, the resort resides on a site with about 150ha of undeveloped land, which has potential for development in the future."

ABR shares closed unchanged at 80 cents yesterday.

A version of this article appeared in the print edition of The Straits Times on December 20, 2017, with the headline 'ABR Holdings to buy 50% of Bintan Lagoon Resort'. Print Edition | Subscribe