Khazanah not part of Singapore KidZania negotiations - Sim Leisure

SHAH ALAM - Singapore-listed theme park developer and operator Sim Leisure Group has clarified that Khazanah Nasional Bhd (Khazanah) was not involved in the negotiations to purchase Singapore KidZania assets.

Sim Leisure Group, founder and executive chairman Datuk Sim Choo Kheng, explained that the group conducted the business through a direct liquidation procedure, with no involvement from Khazanah.

"The assets were in the hands of the Singapore liquidator, and all of Sim Leisure Group's dealings were done through the liquidator," he said in a statement today.

Sim highlighted the significant risk taken by Sim Leisure Group during the asset bidding process.

Due to travel restrictions, they were unable to physically inspect the Singapore KidZania asset or determine the renovation costs.

"Obtaining the lease from the building's owner, Sentosa Development, was crucial for the Sim Leisure Group, as the immovable asset could not be moved to another location," he said.

He also added that securing the licence agreement from the licensor of Mexico KidZania was also necessary.

"However, the uncertainties surrounding the duration of the Covid-19 pandemic posed challenges and potential obstacles to the investments made into the assets," he said.

Reports indicated that Khazanah and Boustead Holdings Bhd sold Singapore KidZania to Sim Leisure Group Ltd, listed in Singapore, for S$110,000.

Singapore KidZania had ceased operations in 2020 due to the pandemic after opening in April 2016 on Pulau Sentosa, Singapore.

Theme Attraction Resorts and Hotels Sdn Bhd (TARH), a subsidiary of Khazanah, owned 80% of the shares in Rakan Riang Pte Ltd (Rakan Riang Singapore), which managed KidZania in collaboration with Boustead Curve, a subsidiary of Boustead Holdings.

Last week, Prime Minister Datuk Seri Anwar Ibrahim stated that he would be discussing the sale of Singapore KidZania at an exceptionally low price with Khazanah Nasional Bhd.