KUALA LUMPUR: Malayan United Industries Bhd (MUI) has inked a deal to sell a 4.2-acre freehold land together with a hotel in Britain for £6.5mil cash (RM36.22mil) to Westbourne Leisure Ltd.
In a filing with Bursa Malaysia, the group said its wholly-owned subsidiary The Regency Hotel Hospitality Ltd had entered into an agreement with Westbourne on Dec 31, 2021.
The property, located at Shirley, Solihull, West Midlands, comprises a full service, three-star hotel with 111 guest bedrooms.
The hotel, with a total gross floor area of 77,526 sq ft, currently operates under the name The Regency Hotel and had previously operated as Corus Hotel Solihull.
Based on the property’s audited net book value of £6.5mil as at June 30, 2021, the sale is expected to result in a pro forma loss of RM3.12mil to the MUI group.
MUI said the sale would unlock the value of the property and the proceeds will enable the group to strengthen its cash flow as well as repay bank borrowings.
The proposed sale is expected to be completed in the second quarter of 2022.