UEM in RM434.3mil Iskandar Puteri land sale


  • Property
  • Saturday, 10 Oct 2020

UEM Sunrise and AME are collaborating to develop Phase 3 of the Southern Industrial and Logistics Clusters (SiLC) in Iskandar Puteri, on which the land is located. SiLC’s phases 1 and 2 have been sold out. UEM Sunrise is the landower and master developer of Iskandar Puteri.

KUALA LUMPUR: UEM Sunrise Bhd and its wholly owned units have entered into two heads of agreements with subsidiaries of AME Elite Consortium Bhd for the proposed disposal of 72 freehold industrial plots measuring 68ha (169.8 acres) in Iskandar Puteri, Johor, for a total sum of RM434.3mil.

The construction of industrial parks is one of catalytic developments to spur progress in the Iskandar Puteri Development Masterplan, AME Elite Consortium told Bursa Malaysia.

UEM Sunrise and AME are collaborating to develop Phase 3 of the Southern Industrial and Logistics Clusters (SiLC) in Iskandar Puteri, on which the land is located. SiLC’s phases 1 and 2 have been sold out.

UEM Sunrise is the landower and master developer of Iskandar Puteri.

AME Elite Consortium and its subsidiaries specialise in the construction of customised large manufacturing plants, as well as design-and-build and development of industrial parks.

The group also provides engineering services and property investment and management services in Malaysia.

UEM Sunrise said it decided to collaborate with AME to develop the land into an integrated industrial park. The sale will help UEM Sunrise to monetise the industrial park faster, compared to selling individual plots.

In the first agreement, UEM Land Bhd and Nusajaya Heights Sdn Bhd agreed to the proposed disposal of 69 industrial plots to Pentagon Land Sdn Bhd and Greenhill SILC Sdn Bhd for a total purchase consideration of RM416.1mil.

In the second, UEM Land and Nusajaya agreed to the proposed disposal of three industrial plots to Pentagon for a total purchase consideration of RM18.2mil. Both Pentagon Land and Greenhill are AME subsidiaries.

“Negotiations between the parties have commenced. Pending the conclusion of the negotiations, the parties have agreed to document their intentions as well as the salient terms to be incorporated in the definitive agreements via the signed HoA, ” UEM Sunrise said.

Under the agreements, vendor UEM Land Bhd will be responsible for enhancing existing infrastructures in SiLC. UEM Land and proprietor Nusajaya Heights Sdn Bhd will appoint a third-party service provider to manage and maintain SiLC phase 3’s gated development services for a duration of four years from Jan 1,2021.

In a separate development, UEM Sunrise Bhd managing director and CEO Anwar Syahrin Abdul Ajib handed in his resignation yesterday.

“The board will deliberate on the effectivedate of resignation of Anwar Syahrin, ” the board told Bursa.

In the meantime, a transition plan will be executed for smooth handover of his responsibilities to ensure continued management of UEM Sunrise’s business and operations.

Anwar Syahrin said his resignation would give him time to pursue other opportunities.

His decision comes days after Eco World Development Group Bhd received a letter from UEM Group Bhd proposing and outlining a merger between UEM Sunrise and EcoWorld.

UEM Group said the consolidation would harness the strengths and capabilities of UEM Sunrise and EcoWorld, and make it one of the country’s largest property companies.

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