Malaysia approves Chesterfield hotel
CHESTERFIELD Limited's long-running plan to develop a hotel project in Kuala Lumpur is at last taking shape with the endorsement of Malaysian authorities.
The Malaysian Attorney-General's chamber approved the lease of land behind Chesterfield's site for a car park, to become part of the firm's complex.
Chesterfield is yet to finalise building plans for the hotel and office building and shopping complex, to cost about $300 million.
The land, bought from Far East Consortium, is Chesterfield'slargest asset, with a book value of $122 million.
Chesterfield's Malaysia-based legal adviser, Andrew Lim Tatt-keong, who is also a non-executive director, said construction could start as early as 1996.
Far East, with substantial Malaysian real estate development interests, acts as adviser to Chesterfield.
The company is to evaluate the net value of the six companies handed over by MKI Corp to settle a $24.76 million court claim.
In a special general meeting yesterday, Chesterfield shareholders approved the scheme by which MKI would pay in terms of its stake in the six joint ventures a book value of $16 million and cash of $2.5 million.
Chief executive officer Liu Ngai-wing said the agreement would mean Chesterfield would get back 75 per cent of what MKI owed it.
This would be the best possible arrangement that could be secured.
But Chesterfield had been unable to carry out due diligence because of lack of market information on the companies.
Five of the companies are located in China and one is in Hong Kong. Their net value had not yet been ascertained.
Chesterfield said it had the financial resources to continue the businesses of the joint ventures if they were potentially profitable.