UDA in deal to re­de­velop Pu­lau Jere­jak re­sort

The Sun (Malaysia) - - SPEAK UP -

PETALING JAYA: UDA Hold­ings Bhd has en­tered into a jointven­ture agree­ment with Q Is­lands De­vel­op­ment Sdn Bhd (QID) to re­de­velop Jere­jak Rain­for­est Re­sort & Spa and 80 acres of land sur­round­ing it into a mixed de­vel­op­ment which will have a bridge link­ing Pu­lau Jere­jak to the main is­land, 1,200 res­i­den­tial units and a theme park, among others.

The plan also in­cludes a ma­rina, four- and five-star ho­tels and a 11.5km cy­cling track.

The re­de­vel­op­ment mas­ter plan has al­ready been ap­proved by the Pe­nang gov­ern­ment and re­de­vel­op­ment work is ex­pected to start in the fourth quar­ter of 2017 and com­pleted within eight to 10 years. UDA did not dis­close the re­de­vel­op­ment cost of the prop­erty.

The re­sort was closed in May this year after ac­cu­mu­lat­ing “heavy losses” since es­tab­lish­ment in 2004.

In a press state­ment re­leased yes­ter­day, UDA said it will ul­ti­mately own 100% of Trop­i­cal Is­land Re­sort Sdn Bhd upon com­ple­tion of the no­va­tion agree­ment to en­sure the suc­cess­ful trans­for­ma­tion of Jere­jak Rain­for­est Re­sort & Spa into an at­trac­tive tourist des­ti­na­tion, which at the same time would in­volve other real es­tate ac­tiv­ity.

Trop­i­cal Is­land was ini­tially a joint-ven­ture com­pany be­tween UDA and the Pe­nang De­vel­op­ment Corp (PDC). It is not known when PDC ex­ited the com­pany and at what price.

Fil­ings with the Com­pa­nies Com­mis­sion of Malaysia show that Trop­i­cal Is­land Re­sort reg­is­tered a net loss of RM3.34 mil­lion for the fi­nan­cial year ended Dec 31, 2015.

This was on top of neg­a­tive re­serves to the tune of RM39.818 mil­lion and li­a­bil­i­ties at RM53.48 mil­lion, out­weigh­ing as­sets by RM8.319 mil­lion.

While it is not clear if QID will be pump­ing in much-needed cash into the ex­er­cise, UDA said Q Is­land is ex­pected to re­brand the op­er­a­tions, en­hance the value and turn the loss-mak­ing prop­erty back into prof­itabil­ity.

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