IDEAL

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TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONS Enter of Memorandum of Understanding with Penang Port Commission

IDEAL UNITED BINTANG INTERNATIONAL BERHAD

Type Announcement
Subject TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)
NON RELATED PARTY TRANSACTIONS
Description
Enter of Memorandum of Understanding with Penang Port Commission

The Board of Directors of Ideal (“Board”) wishes to announce that its wholly-owned sub- subsidiary Company, Solaris Consortium Sdn Bhd (Registration No. 201501004498 (1129830-U)) had signed a Memorandum of Understanding on 1st February 2020 with Penang Port Commission (“PPC”) to Built, Operate and Transfer (BOT) Development of Swettenham Pier Cruise Terminal (“SPCT”) on PPC’s land on part of Lot 53, Lot 36 and Lot 22, Daerah Timur Laut, Pulau Pinang measuring 2.38 acres.

 

This project is to redesign and refurbish the 3 buildings namely Godown 5, Godown 7 and Godown 8 located at the six century-old seafront between the pier and Tanjung City Marina. The Godowns were heritage building built in the early 1900s and restoration works will be conducted in accordance with heritage guidelines. Swettenham Pier commenced construction in year 1901 and was completed by 1904. The pier currently serves as a Cruise Shipping Terminal with Royal Caribbean International making the pier as the mother port for its Asian operation. In year 2019, Swettenham Pier had approximately 500,000 passengers which is an increase of 27.1% as compared to the previous corresponding year. The figure is expected to continuously increase in the coming years. Ideal would refurbished the 3 Godowns to be converted into a seafront tourist spot lifestyle destination including duty-free shops, F&B outlets, homegrown brands offerings, local made products and gift shops. This is to the likes of Woolloomooloo, Sydney with iconic grand gateway to welcome the visitors. This additional retail will complement 1st Avenue Mall as retail can cross sell each other’s location. The refurbishment of the 3 buildings would generate steady and constant income for Ideal with Phase 1 expected to complete by 2021, while Phase 2 and 3 would be completed in year 2022. With the completion, it will produce a total lettable area of 60,900 square feet. The expansion works of SPCT will allow the terminal to cater up to 1.7 million passengers a year and accommodate up to 12,000 passengers at any one time. With the strategic location coupled with the inflow of tourists, Ideal expects this project to be profitable within 3 years and contribute positively to the revenue and earnings of Ideal.  

 

The refurbishment does not entail difference risks other than those applying to the existing business of Ideal, being property development which includes, inter alia, general business risks in relation to the industry, impact of government policies and regulation on the industry, competition and dependence of key personnel. The Company will take necessary steps to mitigate the risks as and when it occurs.

 

None of the Directors and/or Major Shareholders and/or person connected to them, has any interest, direct or indirect in the refurbishment.

 

The Board is of the opinion that the BOT Development is in the best interest of the Company.

 

This announcement is dated 3 February 2020.






Announcement Info

Company Name IDEAL UNITED BINTANG INTERNATIONAL BERHAD
Stock Name IDEAL
Date Announced 03 Feb 2020
Category General Announcement for PLC
Reference Number GA1-03022020-00055