RM1bil investment in Langkawi resort

Khazanah in joint-venture deal under master development plan

LANGKAWI: Khazanah Nasional Bhd, the investment holdings arm of the Government, expects to invest RM1bil with its partners between now and 2014 to develop Teluk Datai in Langkawi.


Peremba (M) Sdn Bhd director of development John Ballantyne (right) briefing Datuk Seri Najib Tun Razak during a tour of the Teluk Datai Resorts development. Accompanying them are Tan Sri Azman Mokhtar (left) and Peremba executive chairman Tan Sri Razali Rahman (second left).

Managing director Tan Sri Azman Mokhtar said the development would be done through Teluk Datai master development plan and Khazanah would get involved via its investee company Teluk Datai Resorts Sdn Bhd.

Under this master plan, we will re-invest in the existing hotels in Teluk Datai and investment in select pieces of earmarked land in an environmentally sensitive manner, he said yesterday at the launch of the master plan.

The plan was launched by the Prime Minister Datuk Seri Najib Tun Razak

In July, the group acquired 70% stake in Teluk Datai Resorts, which owns The Datai Langkawi hotel, The Golf Club, Datai Bay and 1,494 acres at Teluk Datai.

The remaining 30% interest in Teluk Datai Resorts are held by Tan Sri Razali Rahman and Datuk Hassan Abas through Archipelago Hotels (East) Sdn Bhd.

Azman said Khazanah's investment in Teluk Datai Resorts was in line with the Government's efforts to drive the economy upwards under the Economic Transformation Plan.

It is also consistent with the key thrust of the New Economic Model of moving Malaysia towards a high income economy, supported by high-skilled local labour force and sustainable products and services and embodies the spirit of collaboration and partnership between the public and private sector, he said.

The first of the projects under the plan was to enhance The Datai Langkawi hotel through the development of 14 luxury villas, expected to be completed in the first quarter 2012.

Teluk Datai Resorts had also commenced reviewing the realignment of The Golf Club, Datai Bay to upgrade the golf course and also enable the land to be optimised for beachfront development, targeted for completion in the third quarter of 2012.

At the event yesterday, Teluk Datai Resorts also signed a head of agreement with Shangri-La Hotels (M) Bhd for the establishment of a joint-venture company (51% would be owned by Teluk Datai Resorts) to develop a 5-star resort there that would later be managed by Shangri-La Int Hotel Management Ltd under the Shangri-La brand.

It was expected that there would be another premium 6-star hotel and a selection of premium villas for sale in Teluk Datai.

To preserve the environment during the development, Teluk Datai Resorts has engaged Camco South East Asia to undertake a sustainability study.

It also announced that the group had adopted Sekolah Kebangsaan Ewa as part of its corporate social responsibility initiatives.

By The Star

Karambunai Corp: No notification from govt to develop eco-nature resort, no MoU signed with SPV

KUALA LUMPUR: Karambunai Corporation Bhd (KCB) has clarified that it has neither received any notification from the government nor has it signed any agreement with or have shareholding in special purpose vehicle (SPV) originated by its controlling shareholder, together with a Beijing-based contractor, to develop an integrated eco-nature resort in Karambunai.

Karambunai Corp's controlling shareholder is low-profile tycoon Tan Sri Dr Chen Lip Keong.

Karambunai Corp is one of the largest resort operators in Kota Kinabalu with its Nexus Karambunai Hotel resort in Sabah. The Main Board-listed company has 600ha of land in the Karambunai peninsula. About 130ha have been used to build the five-star Nexus Resort Karambunai, Nexus Golf Resort Karambunai and 200-odd units of luxury beachfront villas.

The company came under the spotlight after it was mentioned in the 2011 Budget Speech that there were plans to develop an integrated eco-nature resort in Karambunai.

The government announced in its Budget 2011 on Oct 15 that it would allocate RM100 million to part finance developer and resort operator Karambunai Corp’s integrated eco-tourism resort in Kota Kinabalu.

The RM3 billion project is slated to start next year and is expected to take about five years to complete.

In a filing to Bursa Malaysia on Friday, Oct 22, KCB said the promoter was a SPV specifically incorporated to assess the feasibility of investing in the Karambunai Peninsula.

“Together with its local and overseas consultants, including its financial consultant China Construction Bank International, the SPV aims at bringing in foreign direct investments to Malaysia and has presented proposals to the Malaysian government to assess the relevance and importance of developing Karambunai, Sabah to spearhead the growth of tourism in the Eastern corridor of Malaysia.

“Up to date, Karambunai Corp has no shareholding in the SPV, nor has it received any official notification from the government or signed any MoU (Memorandum of Understanding) or agreement with the SPV to develop Karambunai yet,” it said.

However, both the management of Karambunai Corp and SPV have concrete, specific, clear time-line plans and commitments to the Malaysian government to attain the desired results under Economic Transformation Programmes as envisaged by the Government, it said.

The company said its board of directors was of the opinion that there were not yet corporate developments which merit disclosure.

By The EDGE Malaysia (by Surin Murugiah) (Posted on 22Oct2010)

Govt to spend RM100m on Karambunai resort

Developer and resort operator Karambunai Corp Bhd will build an integrated eco-tourism resort (IR) in Kota Kinabalu, Sabah, for over RM3 billion.

In unveiling the 2011 Budget yesterday, Prime Minister Datuk Seri Najib Tun Razak said the government will allocate RM100 million to part-finance the development.

Najib said the project will start next year.

The IR project is now under planning and it will take about five years to complete.

It is learnt that the project, which may look like Singapore's Marina Bay Sands, will be developed over 200ha of land in the Karambunai peninsula.

Karambunai Corp has 600ha of land in the Karambunai peninsula. It has since 1997 used about 130ha to build the five-star Nexus Resort Karambunai, Nexus Golf Resort Karambunai and 200-odd units of luxury beachfront villas.

Company sources said the IR project will have four- and five-star hotels and resorts, waterfront properties and an entertainment centre.

It may also include a museum, cultural villages, a cable car and a theme park similar to the famed Disneyland.

"We have the support of the state-government, which is very pro-active in eco-tourism projects in Sabah. International experts will be roped in for the IR project to ensure that it attracts locals and foreigners, targeting a boost in tourism," one source said.

Sabah-based Karambunai Corp is linked to NagaCorp Ltd, which is listed in Hong Kong and operates a casino in Cambodia.

The two companies' common shareholder is Tan Sri Dr Chen Lip Keong, who founded NagaCorp and serves as its chief executive officer. Chen is president of Karambunai Corp.

By Business Times