The acquisition, for a total cash consideration of EUR17.5 million, includes the largest free standing dome ("Berlin Dome") in the world measuring 360 metres long, 210 metres wide and 107 metres high, an exhibition centre and buildings as well as 500 hectares of freehold land outside Berlin, in the State of Brandenburg, Germany.

The acquisition was completed following the fulfilment of the conditions set out in the commercial agreement signed in July last year. These include the necessary planning approvals and building permits which have been obtained from the relevant German authorities for the development and operation of the Berlin Tropical Islands project, an edutainment and leisure based tourist holiday destination that provides an all year-round indoor tropical environment within the Berlin Dome.

A joint "Passing of Keys and Ground Breaking" ceremony will be held in Berlin today to mark the completion of the acquisition. Guests of Honour are the Prime Minister of the Federal State of Brandenburg, Mr. Matthias Platzeck, who will officiate the "Passing of the Keys" ceremony, while the ground breaking ceremony will have the Minister of Economic Affairs of the State of Brandenburg, Mr. Ulrich Junghanns doing the honours. Also present at the ceremony are Datuk Khoo, Chairman of Tanjong; Mr Colin Au, President and Chief Executive Officer of Tropical Islands; as well as other dignitaries from the State of Brandenburg.

The Berlin Tropical Islands project is a resort destination with an exotic year-round tropical setting featuring different themed areas of natural islands, such as rainforest, sea, lagoon, village, park, flower garden and market place.

Its year-round tropical setting means that it will be extremely attractive to visitors from Germany and Europe in winter while in summer, it will have a significant number of visitors as it is located next to Spreewald, a huge nature reserve with large number of rivers and lakes. Spreewald, which is listed as a UNESCO world heritage site, attracts some 4 million visitors a year.

Total development costs for the Berlin Tropical Islands project, which is scheduled for completion in the fourth quarter of 2004, is estimated at approximately EUR70 million, which includes the EUR17.5 million acquisition costs of the assets of CargoLifter AG Group.

A joint venture company, Central Pacific Assets Limited ("CPA"), held equally by Tanjong Entertainment Sdn Bhd ("TESB"), a wholly-owned subsidiary of Tanjong, and Au Leisure Investments Pte Ltd ("Au Leisure"), had initially been formed to undertake the above acquisition and the completion of the project.

Following the successful completion of the acquisition, the partners had agreed to a new joint venture arrangement which sees Tanjong Group increasing its equity interest to 75% in Tropical Island S.ar.l ("TISARL"), the joint venture company which will now undertake the Berlin Tropical Islands project. Au Leisure holds the remaining 25% equity interest.

Datuk Khoo said, "The increased percentage of equity participation in TISARL of 75% will accord the Tanjong Group control of TISARL. As a subsidiary of the Tanjong Group, TISARL would be better placed to draw upon the Tanjong Group's internal resources and external business relationships in its development of the Berlin Tropical Islands project."

Details of the announcement are available from the Kuala Lumpur Stock Exchange website at www.klse.com.my and at Tanjong website, www.tanjongplc.com.

Date Posted : 16 Apr 2004
Source : Kuala Lumpur