Hatten Land Secures New Strategic Investor For Harbour City In US$323 Million Deal

By Massita Ahmad SINGAPORE, Aug 12 (Bernama) -- Melaka-based Hatten Land Ltd has signed a pack worth US$323 million (US$1 = RM4.195) with Tayrona Capital Pte Ltd relating to the Harbour City project in the state. The Harbour City project, which is held under Gold Mart Sdn Bhd, is incorporating elements of retail, hospitality and entertainment within an integrated mixed development. Under the agreement, Tayrona Capital will invest US$23 million in Gold Mart via the issuance of new shares, allowing it to obtain a 99 per cent equity stake in the latter. In addition, it will inject US$240 million to improve and complete the development and marketing of the marine-themed mixed development which comprises the thematic Harbour City Mall, Melaka’s largest ‘Sky’ water theme park of 500,000 square feet, as well as a luxury hotel. As the concept originator and project developer of Harbour City, Hatten Land, meanwhile, will assign various intellectual property such as project design and concept, domain names, internet site and marketing materials to Tayrona Capital for a consideration of US$60 million. “The transaction is a testament to our ability in creating innovative property concepts, developing quality property assets and unlocking value,” Hatten Land executive chairman and managing director Colin Tan said in a statement Tuesday. "We are thrilled that Tayrona Capital recognises the potential of Harbour City and shared our optimism for the long-term prospects in Melaka," he said. With Tayrona Capital’s international track record and expertise in hotel development and hospitality management, Tan said there are strong potential and synergies for both companies to collaborate together in other projects in Melaka moving ahead. Tan noted that the proceeds from the transaction will strengthen the Group’s balance sheet and provide it with the greater financial flexibility to pursue new growth initiatives. “Harbour City’s avant-garde design and innovative concept are a strategic fit to our portfolio of global hospitality assets. "We look forward to working closely with Hatten Land to create new tourism and economic opportunities in Melaka from this project,” Tayrona Capital chief executive officer James Ordonez said. Tayrona Capital is part of the Tayrona group of companies headquartered in Singapore. Habour City will be an addition to its Sagana Hotels & Resorts network of 32 hotels/resorts worldwide and Ultra Luxury Integrated Destinations Collection which currently has operations and developments in 22 countries. As at end-March 2020, Hatten Land had net assets and net current assets of RM370 million and RM307 million, respectively. In addition, the Group has approximately RM1.3 billion of unsold completed properties. -- BERNAMA