KUALA LUMPUR (April 1): Berjaya Corp Bhd (BCorp) said it has finalised the acquisition of eight parcels of freehold land totaling 20,977.15 sq metres or 5.18 acres in Yokohama, Japan for ¥12.61 billion (RM407.3 million).

The group said its wholly-owned subsidiary, Berjaya Yokohama Hospitality Asset TMK (BY-TMK), had on March 29 entered into an agreement with the city of Yokohama for the acquisition of the waterfront property.

The acquisition, initially announced in December 2022, was intended for the development of the Four Seasons Yokohama Harbour Edge project, consisting of a luxury hotel, upscale residences, an aquarium and retail outlets, for ¥12.66 billion (RM408.82 million).

However, the final consideration was reduced and offset against the superficies of Minato Mirai Bridge for 47.09 million (RM1.52 million) as compensation to BY-TMK, said BCorp in a bourse filing on Monday, adding that the amount has been fully settled by BY-TMK.

"Following the full settlement of the final consideration, the proposed acquisition has been completed," added BCorp.

While the acquisition will be partially funded by borrowings, BCorp anticipates an increase in the group's gearing.

"Nevertheless, upon the successful completion of the project, the proposed acquisition is expected to contribute positively to the earnings of BCorp," it added.

As part of the acquisition, BY-TMK also entered into a lease agreement with the city of Yokohama for the lease of three parcels of waterfront land adjacent to the main land, totaling about 1,191.17 sq metres, located five metres from the ocean front.

The lease agreement entails an annual lease payment of ¥3.14 million (RM101,573) for a duration of five years from April 1, 2024.

The city of Yokohama and BY-TMK have agreed to negotiate a new lease agreement in 2025, before BY-TMK commences any building construction, potentially extending the lease term to 20 years with a renewal clause.

Shares in BCorp closed half a sen or 1.67% lower to 29.5 sen, giving the group a market capitalisation of RM1.76 billion.