KUALA LUMPUR, Singapore-listed developer GuocoLand Ltd is divesting one of its Malaysian hospitality assets as part of its ongoing portfolio rebalancing. The group announced that it is selling the five-star Thistle Johor Bahru hotel together with the land it sits on to YTL Hotels & Properties Sdn Bhd, a wholly-owned subsidiary of YTL Corp Bhd, for RM150 million.
In a filing with the Singapore Exchange (SGX), GuocoLand said the transaction is expected to generate a net gain of RM35 million (US$11 million) upon completion. Proceeds from the disposal are likely to strengthen its balance sheet while unlocking value from its hospitality portfolio.
The 381-room Thistle Johor Bahru, located in the city centre near the causeway to Singapore, has long been a key landmark property within GuocoLand’s hospitality assets in Malaysia. The hotel is part of the Thistle brand, which has a strong presence in the UK and Malaysia.
This sale, however, may not be GuocoLand’s last move in the sector. According to The Edge Malaysia, the developer is also open to selling its other hotel — the 251-room Thistle Port Dickson Resort, located along the coastal town of Port Dickson. Market sources cited by The Edge indicated that the asking price for the property ranges between RM135 million and RM150 million.
The Johor Bahru disposal had been anticipated since mid-August, after The Edge Malaysia reported that GuocoLand was in advanced discussions with YTL Hotels for the asset. The deal is now confirmed, adding another prime hospitality property to YTL’s growing portfolio under its hotels and resorts division.
YTL Hotels, which owns and manages luxury properties worldwide, including the Ritz-Carlton in Kuala Lumpur and the JW Marriott in Singapore, is expected to integrate the Johor Bahru hotel into its expanding hospitality business.
Meanwhile, GuocoLand continues to focus on its core property development and investment businesses across Singapore, China, and Malaysia, while selectively divesting non-core assets. On the Singapore Exchange, GuocoLand’s shares closed at $1.86 on Aug 29, down 1.06% from the previous day.
