By Romesh Navaratnarajah:Tanah Investments Pte Ltd (TIPL), a wholly-owned subsidiary of SC Global Developments, is acquiring a resort development site in Bali for US$32.5 million (S$40.69 million).
TIPL will acquire shares in two companies, Lotusvale Ltd and Tannerson Ltd, to form an entity, PT Tanah Green Investments (PTTGI), which will undertake the acquisition of the site.
SC Global said the price tag was based on a willing buyer, willing seller basis, based on the plan to develop the plot into a hotel and villa resort.
"The directors (of SC Global) are of the view that the acquisition is a viable investment which will enable the company to diversify into a new geographical location and participate in the rapidly developing market in Indonesia," it said.
"Bali is a well-known international tourist destination and is a natural location for the company to expand its Seven Palms brand, which the company has successfully embarked on in Sentosa Cove, Singapore."
With a total land area of approximately two million sq ft, the site sits atop a cliff overlooking the Indian Ocean.
SC Global noted that the acquisition will be funded through internal resources and is not expected to have any material effect on the company's financial results for FY2012.
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