Information technology and property construction company Vortex Consolidated Bhd is acquiring 187 units of serviced apartments in an on-going property development called Antara @ Genting Highlands in Pahang that is undertaken by Aset Kayamas Sdn Bhd for RM246.35 million cash.
In a bourse filing on Thursday (April 28), ACE Market-listed Vortex said it has entered into a conditional sale and purchase agreement with developer Aset Kayamas for the proposed acquisition.
Spanning 2.163ha, Antara @ Genting Highlands features four blocks of serviced apartments with common facilities/amenities, commercial/retail space and an elevated car park podium. The proposed development, with a gross development value of RM2.24 billion, will be carried out in two phases, of which both phases are expected to be completed by the third quarter of 2025. As at April 20 2022, the proposed development was 16% complete.
The purchase consideration is expected to be funded via a combination of internal funds, proceeds from previous fund-raising exercises, other fund-raising options (such as monetisation of its investment properties or divestment of non-core assets/subsidiary(ies)) and/or bank borrowings.
Currently, Vortex’s property portfolio comprises a mix of commercial and residential properties. It said the proposed acquisition will enable the group to have exposure in sizable investment properties at strategic location to diversify and supplement its future income stream via rental income.
“This is also in anticipation that the demand for properties at or surrounding Genting Highlands is expected to increase in the future in view that the global and Malaysian economies are entering the endemic phase of the Covid-19 outbreak with the rollout of vaccines and the progressive recovery phase of the Malaysian economy, especially in the retail, commercial and tourism industries,” said Vortex.
Vortex shares closed unchanged at 18 sen on Thursday, bringing a market capitalisation of RM194.18 million.