Hotelier group Landmarks Bhd expects the development plans for its RM4.07 billion "Bintan Treasure Bay" project on Bintan Island, Indonesia, to be finalised by the fourth quarter of this year.
Its co-chief operating officer Lim Boon Soon said the plans were awaiting approval from the Indonesian provincial authority.
"We are still in the planning stage. Development works on the project should commence in the early part of next year," he told reporters after the company‘s AGM here yesterday.
Lim said it would be looking at all aspects of the development and would make an announcement relating to the the details of the Bintan project by year-end.
He added that the development work was expected to start early next year.
Landmarks has said the project would entail a lifestyle hotel and resort plus residential and commercial developments with a preliminary estimated gross development value of RM4.07 billion and development cost of RM2.12 billion.
On the possible funding for the project, Landmarks chief operating officer Sulip Menon said: "The options include joint ventures, turnkey contracts and internally generated funds of Bintan Treasure Bay Pte Ltd (BTB)."
Landmark‘s RM355 million cash acquisition of a 64.5% stake in BTB was completed on May 31.
On the expected contribution of the Bintan project to group earnings for the next financial year (FY08), Lim said: "We expect a positive contribution."
Landmarks group posted a 26% decline in revenue from RM165.1 million in FY05 to RM121.7 million in FY06 on the back of the disposal of its investment in Qualitas Healthcare Corp Sdn Bhd, reduction of its investment in MSL Properties Sdn Bhd and lower revenue from Landmarks Engineering & Development Sdn Bhd.
However, net profit rose 48% to RM123.4 million in FY06 from RM29.2 million in FY05, excluding the exceptional gain of RM80.1 million arising from the reversal of impairment losses of Shangri-La Hotels (Malaysia) Bhd.
Source: www.theedgedaily.com (2 Juli 2007)