Damansara Realty receives EPU’s approval for land in Johor


KUALA LUMPUR: Damansara Realty Bhd (DBhd) has obtained the Economic Planning Unit’s (EPU) approval for a land acquisition which is part of its proposed RM141.5mil settlement agreement with Johor Corp (JCorp), allowing it to reduce its net current liabilities and return its balance sheet to health.

In a statement, DBhd said its associate company DAC Properties received the EPU’s approval on Nov 22, and has completed the acquisition of 53.14 acres of land for RM130.3mil from JCorp.

“With the completion of the acquisition, DBhd has met almost all its obligations under the settlement agreement with JCorp, and will reduce the group’s net current liabilities by RM132mil,” group chief executive officer Brian Iskandar Zulkarim said in the statement.

“The completion will mean a stronger balance sheet for DBhd, slashing our net current liability to RM23mil from RM155mil before,” he added.

Located in Tebrau, Johor Bahru, the land is part of DBhd‘s 63-acre Central Park being developed in partnership with the Hong Kong-listed Country Garden, within the strategically located Taman Damansara Aliff along the Pasir Gudang Highway.

“DBhd will still own about 10 acres within Taman Damasara Aliff after Central Park is completed. With this landbank acquisition and the good progress on Central Park, DBhd is on track to strengthen its property development arm,” Brian Iskandar said. 

Central Park is an integrated township comprising, amongst others, residential homes, commercial shop lots, and amenities, to be completely developed over the next six to eight years, with an estimated gross development value (GDV) of about RM3.5bil.

The settlement comprises two acquisitions of land by DBhd from JCorp for RM141.5mil cash, and a land swap. As part of its joint venture with Country Garden Malaysia, DBhd has already completed the payment of RM130.3mil of the total RM141.5mil settlement sum, leaving a balance of RM11.2mil to be paid.

Get 30% off with our ads free Premium Plan

Monthly Plan

RM9.73/month

Annual Plan

RM8.63/month

Billed as RM103.60/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

NCT Alliance's flagship project to boost bottomline
StanChart Saadiq Malaysia appoints Bilal Parvaiz as CEO
AirAsia eyes bilateral rights to fly into Tier 2, Tier 3 cities in India
Ringgit opens higher against US$, other major currencies
China's Country Garden faces liquidation petition
Leong Hup shares slide following earnings announcement
FBM KLCI expected to maintain uptrend
Singapore bank OCBC fourth-quarter profit misses expectations, sees rates falling
Olam Group's Singapore-Saudi dual IPO plan for agricultural unit delayed again
Trading ideas: Mah Sing, Unisem, Alliance Bank, MISC, Tenaga, PetGas, Nestle, UOA, MBSB and Heineken

Others Also Read