UEM Sunrise sells Johor building for RM138mil

KUALA LUMPUR: UEM Sunrise Bhd’s unit UEM Land Bhd has sold the Imperia Building in Nusajaya, a newly-built office block with a retail area, to UEM Group Bhd (UEMG) for RM137.8mil in cash.

The company said in a filing with Bursa Malaysia that the gross proceeds of RM130mil (excluding the goods and services tax) would be used to redeem part of the 450 million redeemable convertible preference shares (RCPS) issued by Bandar Nusajaya Development Sdn Bhd (BND), a unit of UEM Land, to UEMG within the next six months.

If not redeemed, the RCPS would be automatically converted into ordinary RM1 shares in BND upon maturity on Nov 27, 2015, leading to UEMG having a direct stake in the company.

“Given that BND is expected to significantly contribute to the future earnings of the UEM Sunrise group, the board is of the view that it would be in the best interest of UEM Sunrise to raise funds for the redemption of the BND RCPS,” said UEM Sunrise, which is a Khazanah Nasional subsidiary.

In a separate announcement, UEM Sunrise said Datuk Roslan Ibrahim would join the company as chief operating officer (development) effective July 1. Prior to this, Roslan was acting executive director for operations and business development in Puncak Niaga Holdings Bhd.

The resignation of the current COO responsible for development, Lum Tuck Ming, will take effect on July 15.

UEM Sunrise closed 2.5 sen lower at 97.5 sen on Tuesday.