Exsim Hospitality

EXSIM Hospitality Bhd, formerly Pan Malaysia Holdings Bhd, will refurbish and rebrand The Summit Hotel Subang USJ under a RM45 million deal with AmFIRST REIT.

Under the arrangement, Exsim’s wholly-owned subsidiary Mana Mana Holdings Sdn Bhd (MMHSB) will be appointed both project manager and hotel operator.

The refurbishment is expected to be completed within 15 months from the letter of offer dated July 29, 2025.

According to Exsim’s Bursa Malaysia filing today, MMHSB will be paid a fixed fee of RM220,000 for managing the refurbishment, which will be funded by the REIT via borrowings and internal funds, subject to a tender exercise.

Once the hotel reopens, MMHSB will enter into a tenancy agreement with a base rent of RM600,000 per month, plus additional rent based on revenue sharing above a defined threshold.

The lease will commence 30 days after the hotel’s reopening.

The initial lease term is three years, with automatic renewals for two subsequent three-year periods unless MMHSB opts out by providing at least three months’ notice prior to each renewal.

AmREIT Managers Sdn Bhd, the REIT manager, said the exercise is aimed at enhancing the hotel’s income-generating potential and asset value.

The REIT also noted that if the tender results exceed the projected cost, both parties will renegotiate with the selected contractor.

The landlord retains the discretion to terminate the refurbishment exercise unilaterally.

Assuming full debt funding, AmFIRST REIT’s gearing is projected to increase slightly to 48.5% from 47.1%, based on its audited FY2025 figures.

Exsim said the exercise is expected to contribute positively to its net assets, earnings and gearing, and does not require shareholder or regulatory approval. — TMR

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