PETALING JAYA: UEM SUNRISE BHD, which has entered into a shareholders subscription agreement (SSA) with Mega Legacy Equity Sdn Bhd (MLE) to collaborate in a mixed commercial development in Kuala Lumpur, has announced that the conditions precedent to the SSA have been satisfied.
In a filing with Bursa Malaysia yesterday, UEM Sunrise, the master developer of Iskandar Puteri, said the conditions precedent to the SSA were satisfied yesterday.
Among the conditions precedent to be satisfied include a due diligence exercise on the parcels of land being developed, as well as for MLE to procure the state authority’s consent from the Datuk Bandar.
“The SSA is now unconditional and the effective date is April 2, 2019,” said UEM Sunrise.
In April last year, UEM Sunrise, via its wholly owned subsidiary Sunrise Bhd, had entered into an SSA with MLE through Mega Legacy (M) Sdn Bhd (MLM) to collaborate and work together to develop the land parcel in Kepong.
The land is proposed for a mixed commercial development that would include serviced apartments and commercial offerings, with an estimated gross development value of RM15bil across 15 years.
The 72.7 acres, consisting of 10 parcels on lease for 99 years, will be acquired by MLM from Datuk Bandar for RM416.4mil.
Sunrise Bhd had also proposed to subscribe for 500,001 shares in MLM for a total subscription price of RM279.3mil. Part of the proceeds from the proposed subscription will be used by MLM to part finance the purchase price of the parcels to Datuk Bandar.
UEM Sunrise, in its announcement last April, said the proposals were in line with its land-banking strategy to increase presence in high-growth locations in the Klang Valley.
“The said parcels are located in a prime, mature location within the developed area of Kuala Lumpur.”
The company said the collaboration with MLE allows UEM Sunrise the opportunity to secure a sizeable land with an approved development order within Kuala Lumpur and readily available infrastructure with good accessibility and connectivity.
“The Kepong-Sentul district is a strong population growth area as there was a surge in the first-time home-buyer population from 2000 to 2010,” it said.
Based on the development order, UEM Sunrise said two interchanges would be constructed connecting directly to MRR II.
“The first interchange would be completed within 18 months from the first launch of the proposed development, while the second interchange would be completed in 2027.”
“The proposed development shall have components comprising mainly serviced apartments followed by commercial offerings and amenities which will provide the necessary catalyst for the creation of wholesome and sustainable communities,” said UEM Sunrise.
The company added that it was premature to ascertain the development cost, expected profit and additional financial commitment for the proposed development, as the detailed layout plan for the proposed development has not been finalised.
“The proposed development is expected to contribute positively to the company‘s future earnings and further enhance its profile as a reputable township developer,” said UEM Sunrise.