FUND HOUSE MAY SNAP UP RM280MIL WORTH OF HOTELS IN PRIME LOCATIONS IN MALAYSIA.

Petaling Jaya, 07th April 2022

At Areca Capital, we have always played a responsible role of bringing investors to areas of potential growth through innovative products. One such example is the potential turnaround play in the hotel industry. Having taken a beating from the pandemic, the industry is now on the cusp of recovery. Areca Capital is currently exploring hotel investments; eyeing freehold assets in Kuala Lumpur and Penang worth RM280mil. It is aimed to benefit from the economic re-opening and recovery, with a subsequent forming of a Hospitality Real Estate Investment Trust (REIT) or a public listing in 3 years’ time.

When the global pandemic hit, economic and movement lockdowns were enacted to help stifle the spread of the coronavirus and save lives. After what turned out to be a 2-year battle with COVID-19, for some, livelihoods were never the same again. What were once thriving industries that relied on tourism and foot-traffic like hospitality, airlines, restaurant were almost brought to their knees. 

On the road to normalcy, some of these companies need a helping hand now. Larger and higher-profile companies who are big employers may find better fortunes with their funding needs. Nevertheless, what about the smaller and mid-sized companies (SMEs) who, by the Department of Statistics, estimates, account for almost half of the employment in Malaysia in 2020.

We are extremely excited to hear that our borders are reopening. Adapting to life with covid and the downgraded status of endemic, it is good news to industries that were severely impacted by movement restrictions. Early signs of a resurgence of the service industry were evident in the last quarter of 2021 when domestic travelling was permitted.

We see this re-opening of our doors to the world as an area in which we can contribute and aid in our own economic recovery. Areca Capital, in our role as a capital market intermediary, hopes to discharge part of our corporate social responsibility to help some of the affected SMEs.

Within the hotel industry, we understand that there are owners seeking capital and funds as they come off the trough of the COVID-19 pandemic. On the other side of the spectrum, there are astute investors who would like to put their money to work.

There is a mutual-gains outcome here for all parties. We will collaborate with our investors and any interested Financial Institutions in taking over the hotel assets while working alongside the hotel owners. Areca Capital will be forming an investment committee panel comprising of subject matter experts in banking and finance like Datuk Mohd Idzwan Izuddin Bin Datuk Ab Rahman.

We see this as an opportunity for our investors to get access to undervalued assets while enjoying the recovery ride in the hotel industry.

About Areca Capital

Established in 2006, Areca Capital Sdn Bhd is a private wealth manager focused on fund management and wealth advisory. Licensed and registered with the Securities Commission Malaysia and Federation of Investment Managers Malaysia, Areca Capital’s equity fund has consistently won the Refinitiv Lipper Fund Awards.

We take cognisant of our role – not just as a wealth manager in safeguarding the assets of our investors and clients, but also to help educate and bring focus to the importance of sustainability and responsible investing to them and our other stakeholders.

Areca Capital’s reputation as an innovative and award winning fund manager is bolstered by its performance track record and exceptional client service across the broad wealth management spectrum – from wealth protection to distribution. As of February 2021, Areca Capital’s total group AUM is RM2.87 billion. For more information, visit www.arecacapital.com