KUALA LUMPUR: Iskandar Waterfront City Bhd (IWCity) and Shanghai-based Greenland Group will jointly develop a mixed development project in Johor Baru with an estimated gross development value of RM18.4bil.
IWCity told Bursa Malaysia that its unit Southern Crest Development Sdn Bhd had signed a conditional agreement with Greenland Tebrau Sdn Bhd (GTSB) to sell the freehold land, spanning 127.92 acres and partially submerged, for RM2.37bil (RM426 per sq ft).
GTSB is a 20:80 joint-venture between IWCity and Greenland Group, and it will undertake the mixed development.
On the land disposal, IWCity said the group would recognise an after-tax gain of about RM1.2bil or RM1.80 per share in IWCity.
The original cost of the three parcels of contiguous land for IWCity was RM154.84mil.
In addition, IWCity’s unit Tebrau Bay Sdn Bhd will bear all costs and expenses in reclamation works to be carried out for the project, estimated to be about RM557mil.
IWCity said the net cash inflow from the land disposal would be mainly utilised for land improvement works.
IWCity is 47.2% owned by Johor-based Iskandar Waterfront Holdings Sdn Bhd, which reportedly is in turn 40% owned Johor state investment arm Kumpulan Preasarana Rakyat Johor (KPRJ). KPRJ also owns 8% directly in IWCity, based on Bloomberg data.