KUALA LUMPUR: Berjaya Land Bhd is to invest about RM360 million (US$110 million) in a hotel project in Kyoto, Japan.
Construction of the Four Seasons Hotel, which will be the city's fourth global hotel brand, is slated to start in September this year, with completion scheduled for December next year.
"Earthworks and excavation began in September 2013. The official opening of the hotel is scheduled towards the end of spring in 2016," its Executive Director Leong Wy Joon told reporters after the signing ceremony recently.
Kyoto Higashiyama Hospitality Assets Tokutei Mokuteki Kaisha, an indirect wholly-owned subsidiary of BLand, has signed an agreement with Taisei Corporation of Japan for the construction of the hotel development.
The project, with an estimated gross development value of RM1.35 billion, has a built-up area of 34,725 square metres and sits on the historical core of Higashiyama-ku amid Kyoto's heritage sites.
The luxury hotel will consist of 123 rooms, and 56 long stay units will be built with a combination of modern and traditional Japanese design.
Equally significant was the signing of the loan agreement between BLand, RHB Bank Bhd and Mizuho Bank Ltd at the same ceremony.
Leong said Mizuho Bank will be providing a loan of RM523.4 million (US$160 million) backed by a Standby Letter of Credit by RHB Bank.
"Apart from bank borrowings, the Four Seasons Hotel Kyoto project would also be funded by the group's internally generated funds of RM32.64 million (US$10 million).
"The loan was given by Mizuho Bank to avoid foreign exchange risk, which will ease the loan repayment as all transactions are made in yen," added Leong.
Mizuho Bank General Manager of Asia and Oceania Division Katsuyuki Mizuma said despite the challenges arising from cross-border transactions, the group completed the financing in February this year in cooperation with RHB.
"This is a successful cross-border transaction case where Mizuho demonstrated expertise in real estate finance and strong relationships with major foreign banks," he said.
-- BERNAMA
0 comments:
Post a Comment