Australia-listed Silver Heritage Group has purchased a parcel of land in East Nepal for $3.2m, which it says will be used for its Tiger Palace Resort Jhapa project. The firm acquired 7.45 hectares in Jhapa, in Province No. 1.
A filing on 27 August, detailed that the company had previously reached an agreement to purchase 11.5 hectares of land in Jhapa.
While an initial deposit of NPR104.9 m ($946,000) was paid in March 2015, followed by a further deposit in August 2016 of NPR214.4m, Silver Heritage had issues funding the remaining purchase price, leading to the agreement to purchase the land expiring on March 2018, forfeiting both deposits.
Silver Heritage said that it had worked closely with the vendor and has now completed the acquisition of a reduced parcel of land, similar in size to that used for its Tiger Palace Resort Bhairahawa project.
“The company has agreed to sell a 20 percent interest in the Jhapa land owning entity to its local partner Mr. Sanchit Shrestha, a transaction which both generates the required capital to compete the purchase while also reducing its outstanding supplier payables,” Silver Heritage said in a statement.
Meanwhile, the company significantly widened its H1 2018 loss, “mainly due” to “additional interest expense no longer [being] capitalised following the completion of construction of Tiger Palace Resort [Bhairahawa].” Silver Heritage reported a loss of $9.94m for the half-year ending 30 June, compared to $3.52m in the same period last year.