Questions & answers

An overwater villa resort in Port Dickson, Negeri Sembilan, Malaysia, on the Straits of Malacca. Developed by Kuala Lumpur Metro Group with Menteri Besar Negeri Sembilan (Pemerbadanan), and operated as a hotel by Lexis Hotel Group. The villas are sold to individual buyers.

Your villa goes into Lexis Hotel Group’s hotel operation for 15 years, so you never deal with guests or upkeep. The programme has two phases. Years 1–3: a fixed 8% per annum return (gross), paid quarterly in arrears. Years 4–15: profit sharing — 75% of net profits are apportioned to the units in the programme, with 25% shared between the developer and the operator, paid monthly. Throughout the tenancy the owner also gets 10 free nights a year.

For years 1 to 3, the developer states 8% per annum as a fixed return (gross) — its documents call it “fixed” and “guaranteed”. After that, years 4–15 are not a fixed figure: the return follows a 75% share of the hotel’s net profits, so it depends on how the hotel actually trades. Any figure above 8% you may see — such as the 11.5% gross or 10.1% net averages over 15 years — is the developer’s projection, modelled on assumed occupancy of 60–67% and room rates rising every year. A projection is not a promise, and the actual outcome may be lower. Note too that 8% is a gross figure: after annual outgoings of about RM 9,324, the projected net return for years 1–3 is 7.07%.

Yes. Owners receive 10 free nights per year for the duration of the 15-year ownership period.

Villa prices at Lexis Hibiscus 2 range from RM 850,000 to RM 1,200,000, depending on the unit type and position. Please contact the East2West team for the latest offer and availability.

The tenure of this project is leasehold. Please contact the East2West team for details of the lease term.

The foreign-ownership rules for this project are not set out in the material supplied to us. Malaysian rules include a minimum purchase price for foreigners and state-government consent, both of which vary by state. Please contact the East2West team and take your own legal advice.

The developer’s payment schedule forecasts handover in June 2029, with water and electricity ready to connect. That date is the developer’s forecast rather than a commitment — and some of the earlier dates on the same schedule have already passed, so please check the current status with our team.

The estate is planned for 688 units. Only Type A has been specified to us so far: a two-storey overwater villa, 2 bedrooms, 2 bathrooms, with a private pool — 858 sq ft for the lower variant and 872 sq ft for the upper. The rental projection document refers to “Type A & B”, so a Type B exists, but its size and plan have not been supplied to us.