UEM Sunrise to acquire 2.58 hectares of land in KL for RM384m

Thursday, 04 Aug 2022 9:15 PM MYT

KUALA LUMPUR, Aug 4 — UEM Sunrise Bhd’s indirect wholly-owned subsidiary, Lucky Bright Star Sdn Bhd, has entered into a sale and purchase agreement (SPA) with Nippponkey Sdn Bhd for a proposed land acquisition for a total purchase price of RM384.04 million.

In a filing with Bursa Malaysia today, the investment is to be satisfied via a cash payment of RM235.79 million and RM148.25 million in kind.

The 2.58-hectare (ha) freehold parcel is located at Jalan Yahya Petra, previously Jalan Semarak, in Kuala Lumpur.

For the payment in-kind, Nipponkey also entered into 16 disposal and land transfer agreements with UEM Sunrise’s indirect wholly-owned subsidiaries, Nusajaya Rise Sdn Bhd (NRSB) and Symphony Hills Sdn Bhd (SHSB), being the registered landowners of a net area of 43.63 ha in the district of Johor Baru, Johor.

The filing said the parcels are part of Gerbang Nusajaya, Iskandar Puteri and have a total consideration of RM148.25 million.

The company said that the proposed acquisition is in line with its three-pronged turnaround plan ‘Triage’, ‘Stabilise’, ‘Sustain’, implemented to chart a clear path towards becoming a balanced real estate player.

“The first phase ‘Triage’ is focused on undertaking activities to strengthen financial performance, revitalise and strengthen product portfolio and expedite new product launches.

“The proposed acquisition is aligned with the company’s needs under ‘Triage’, which centre on strengthening its pipeline to drive sustainable growth, and at the same time, rebalance its landbank portfolio as evidenced by the transfer and disposal of the Gerbang Nusajaya land,” it said.

The land in Kuala Lumpur is to be developed and the development is estimated to generate a gross development value of RM1.5 billion over a span of four years commencing with its tentative launch in 2024, the filing said. — Bernama