KUALA LUMPUR: MMC Corp Bhd is buying Tan Sri Syed Mokhtar Albukhary's entire 50% stake in a joint venture that is developing urban renewal project for the KL City Hall.
Under the deal, MMC Corp, in which Syed Mokhtar is a substantial shareholder, will acquire Tradewinds Corp Bhd's entire 50% stake in Retro Highlands Sdn Bhd for RM250mil cash.
Tradewinds is wholly owned by Syed Mokhtar.
"The Proposed 50% Retro Highland acquisition entails the acquisition of the Sale Shares and the Shareholder’s Loans and Loan Interest by MMC Land from Tradewinds for a cash consideration of RM250mil," MMC Corp said in a filing with Bursa Malaysia today.
Retro Highland is a joint-venture company between Tradewinds and SP Setia Bhd and is appointed by the City Hall to undertake the planning, design, construction, completion and commissioning of a project known as Quality Sustainable People Housing (QSPH) for Urban Renewal Development on the lands belonging to the City Hall.
The QSPH project is to replace the existing development known as Sri Johor, Sri Pulau Pinang, Sri Melaka and Taman Ikan Emas located at Bandar Tun Razak in Cheras.
In consideration, Retro Highland will be awarded with approximately 77.80 acres of leasehold lands located in Cheras, Kuala Lumpur, which Retro Highland is entitled to develop a mixed-use development of residential and commercial units.
"The Proposed 50% Retro Highland Acquisition provides opportunity for potential steady flow of construction orderbook for residential and commercial buildings to MMC Group by participating in property development through the strategic collaboration with a leading Malaysian property developer, namely SP Setia, to undertake the QSPH Project, which includes the development and construction of commercial and residential buildings," MMC Corp said.