Highlight BAssets to replicate resort in JB?

Highlight BAssets to replicate resort in JB?
Business & Markets 2013
Written by Fatin Rasyiqah Mustaza of theedgemalaysia.com
Thursday, 12 December 2013 08:47


KUALA LUMPUR: There are bigger things in store for Berjaya Assets Bhd (BAssets) in Johor following its partnership with Sultan Ibrahim Ismail Sultan Iskandar of Johor, who will be taking up a 20% stake in Berjaya Times Square Sdn Bhd (BTSSB).

Sources said that as part of a bigger plan for BAssets, the group plans to build a mini Bukit Tinggi in Berjaya Waterfront in Johor Baru.

“The plans are there to replicate a Bukit Tinggi in JB. It requires approval, though, from the state and federal governments,” said a source.

The Berjaya group has a hill resort in Bukit Tinggi, Pahang, which is being positioned as an alternative to Genting Highlands where a casino and theme park attract thousands of visitors.

Apart from Berjaya Times Square, located in Kuala Lumpur, BAssets owns and manages
Berjaya Waterfront in Johor Baru (formerly known as The Zon, Johor) with properties spreading over 18 acres (7.28ha) of prime land in Johor.

On Tuesday, BAssets announced that the Sultan had proposed to acquire a 20% stake in BTSSB for RM250 million. It was a deal done on a willing buyer willing seller basis.

BAssets will realise an exceptional gain of about RM7.02 million at company level but register an exceptional loss of RM149.15 million at group level because the price transacted is less than the value of the building booked in the books at the group level.

According to its latest annual report, BTSSB acquired The Zon on March 15, 2013. The group said a rebranding exercise was underway to launch the property’s new name, Berjaya Waterfront.

The group said it plans to establish its latest acquisition, Berjaya Waterfront, as an iconic international lifestyle, retail, entertainment and travel hub of the south.

“To provide a more wholesome shopping experience, it is undergoing a rebranding exercise and a facelift which will be accompanied by an upgrade of facilities and services in phases,” it said.

Berjaya Waterfront houses facilities such as a 12-level hotel, a 5-level shopping complex as well as dining and recreation options in addition to the only duty-free zone with a unique ‘Airport in the City’ concept offering wide selections of imported products at competitive prices.

“Fuelled by the burgeoning market, Berjaya Waterfront is being groomed to cater to affluent shoppers from Singapore and Indonesia via the causeway and its international ferry terminal,” it added.

BAssets only acquired the assets in Johor Baru in April last year from two companies including Atlan Bhd.

On April 10, 2012, it announced the acquisition of a 4.89-acre parcel of vacant land in Johor Baru from Atlan for RM31.01 million cash.

It also acquired the remaining lease interest of six parcels of land measuring about 14.12 acres from Darul Metro Sdn Bhd for a cash consideration of RM325 million. The land is where the integrated commercial development of Berjaya Waterfront stands.

According to the annual report, BAssets had also proposed to acquire a parcel of vacant land measuring about 4.28 acres for RM27.99 million from Kelana Megah Sdn Bhd in Johor Baru.

BAssets core asset and business are the management of the Berjaya Times Square mall where its operations cover the car parks and the theme park.

For the financial year ended June 30, 2013, BTSSB recorded revenue of RM124.11 million, an increase of 24.37% compared with the previous year’s. The increase in revenue was mainly contributed by higher revenue reported by Berjaya Waterfront.

Additionally, BTSSB recorded higher rental revenue from the Berjaya Times Square mall and car parks, while theme park ticket revenue also increased in the financial year under review.

However, its net profit stood lower at RM45.65 million compared with RM147.43 million in its previous financial year due to lower favourable fair value changes of investment properties and lower sales of properties recorded.


This article first appeared in The Edge Financial Daily, on December 12, 2013.