Landmarks in resort project

Landmarks in resort project

KUALA LUMPUR: Landmarks Bhd expects future earnings to be buoyed by the development of the Bintan Treasure Bay (BTB) project, said chief operating officer Lim Boon Soon.

“The hotel business will still make a contribution but it will be small. The bulk of earnings will come from the development of BTB,” he told reporters after the company EGM yesterday.

“However, as the plans for BTB were not finalised yet, the company would not be able to determine when the project would break even,” Lim said, adding that project would span over eight years.

The gross development value of the project in Indonesia is estimated at RM4.07bil while the development would cost RM2.12bil, according to the company circular to shareholders.

The BTB is part of the group's strategies to become a regional player in resort development and management, and hospitality.

During the meeting, shareholders raised some doubts on the proposed sale of Sungei Wang Plaza for RM284.8mil and the purchase of 64.5% stake in Bintan Treasure Bay Pte Ltd for RM355mil cash.

However, both resolutions were eventually passed after clarificationby the board of directors.

Lim said shareholders' view on the sale of Sungei Wang Plaza was more a “sentimental” factor while the board's decision was based on commercial reasons.