THE BUZZ
Yesterday UEM Land has announced on Bursa Malaysia that its wholly-owned subsidiary,
Nusajaya Premier SB (NPSB), has entered into sale purchase sale and purchase agreement with Tanjung Bidara
Ventures SB (TVB) - a
wholly-owned subsidiary of Khazanah Nasional (Khazanah) - in relation to the proposed acquisition of 122.28
acre parcel of freehold land located in Nusajaya, for total consideration of
about RM93.2m.
OUR TAKE
More on the deal.
The proposed acquisition involves
the acquisition by
NPSB from TBV of a parcel of freehold
land held under the title number HS(D) 500347, PTD 182860, in the Mukim
of Pulai, district of Johor Bahru, measuring about 122.28 acres, or 5,326,416.61
sq ft, for a total cash consideration of RM93.2m, or RM17.50 psf. The land is a
vacant parcel of freehold land currently classified as agricultural land,
although it is designated for residential development. The land is
strategically located in Nusajaya and is
some 40km to the south-west of Johor Bahru city
centre. It is also adjacent to Kota Iskandar and UEM Land’s existing
prime development in Nusajaya,
being Puteri Harbour, an
integrated waterfront and marina development.
Buying back from
Khazanah. The land forms part of
the land bank
totaling 4,500 acres which
was effectively disposed of to
Khazanah as part of the degearing of the
UEM World group of
companies in 2006. UEM World was previously the immediate holding
company of UEM Land’s wholly-owned subsidiary,
UEM Land (prior
to ULHB’s listing
on Bursa Malaysia 2008). The
degearing was undertaken by the UEM World group with the intention to, among
others, improve its gearing position via the disposal of landbank. With the
significant strengthening of
the UEM Land Group’s
financial position and
operational capabilities as well
as the improved development landscape
amid clarity of Nusajaya’s
potential since the degearing
exercise, UEM Land believes
that it is now an
opportune time for
the group to re-acquire the land from Khazanah.
Our view. We are
not entirely surprised the acquisition as UEM Land had previously indicated
that it was considering buying back some land parcels from Khazanah in order to
consolidate the strategic land parcels that are
close to its existing development in Puteri Harbour. The proposed
acquisition will also enable UEM Land to realize its original development
vision for Puteri Harbour, where the high-density urban waterfront precincts at
the heart of public and private marinas are balanced with landed and highrise
residential precincts on both sides, with the land it plans to buy back being
on one of the sides.
Source: OSK188
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