VCI Global Limited Proposes Acquisition of Resort Properties in Bali and Phuket

KUALA LUMPUR, Malaysia, Oct. 06, 2023 (GLOBE NEWSWIRE) -- VCI Global Limited (NASDAQ: VCIG) (“VCI Global”, or the “Company”) has entered into a letter of intent to acquire the leasing rights of Impiana Private Villas Cemagi, Bali and Impiana Private Villas Kata Noi, Phuket from Impiana Sdn Bhd, through its subsidiary, V Capital Real Estate Sdn Bhd.

Impiana Private Villas Cemagi comprises 6 villas covering over 604 sq m, which accounts for only 8% of its total land area, providing opportunity for future expansion when required. Impiana Private Villas Kata Noi in turn has 11 villas covering 1,105 sq m, covering less than 40% of its land area.

Growth potential at these two internationally renowned tourism hotspots is astounding. Thailand’s hospitality industry is expected to reach USD$19 billion by 2028, giving a 5-year compound average growth rate of almost 30%. For Phuket itself, the 9.2 million tourist arrivals in 2022 have surpassed pre-Covid levels. Nevertheless, arrivals are expected to surge further with an anticipated 30% growth to 12 million in 2023. The Thailand government has already implemented developments of supporting infrastructures to cater for this surge in arrivals such as the expansion of Phuket International Airport. Upon completion of the expansion by 2027, the airport will be able to handle 18 million passengers annually. All these will lead to higher occupancy rates and increased revenue for the local tourism industry.

Market research organisations have valued Indonesia’s travel and tourism sector at US$7.5 billion to US$8.0 billion in 2023, increasing to between US$10 billion to US$11 billion by 2027. This implies the sector is expected to experience a compound annual growth rate of 6% to 8%. With the largest segment of this sector being the hotels market, accounting for US$4.3 billion in 2023, such anticipated high growth will undoubtedly benefit Bali, being Indonesia’s thriving tourism sector’s focal point. Bali itself contributes approximately 20% of Indonesia’s total accommodation offerings.

“The acquisitions of Impiana Cemagi and Impiana Kata Noi are strategic investments. The bright prospects basically guarantee good returns on our investment. To optimise the potential value of these two resort properties, we intend to redevelop Impiana Cemagi while Impiana Kata Noi will be refurbished through V Capital Real Estate. More importantly, this is in line with our plans to seek more opportunities in the hospitality segment within the Southeast Asia region, following our recent partnership with YY Group Holding Limited,” said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.