KUALA LUMPUR (Nov 30): UEM Sunrise Bhd and UEM Edgenta Bhd’s wholly-owned subsidiary have entered into an agreement to form a joint venture (JV) to provide property and township management services.

In a filing with Bursa Malaysia today, UEM Sunrise said it entered into a JV agreement with UEM Edgenta’s unit, Edgenta Township Management Services Sdn Bhd (ETMS) — a move to realign its focus on property development, which is its core business.

Whereas UEM Edgenta said the JV would extend its presence in the asset facilities management business, specifically property and township management services segment.

ETMS will hold a 70% stake in the JV company, with an eventual issued and paid-up capital of RM3.9 million; while UEM Sunrise will hold the remaining 30% stake.

“It currently provides property management services for its various property development projects. The provision of these services are not part of UEM Sunrise’s core business and the purpose of the proposed JV is to allow UEM Sunrise to realign its focus on its core businesses of property development,” UEM Sunrise said in the filing to Bursa Malaysia.

For UEM Edgenta, the proposed JV is aligned with its strategic plan to extend its presence in the asset facilities management business, specifically the property and township management services segment.
 
It said that through the JV, EMS could leverage on UEM Sunrise’s current and future developments to provide property and township management services for assets developed by UEM Sunrise and third parties, locally and abroad.

It added that the deal would serve as a platform to expand in the township management services, stratified management services and security management services for existing and new customers not currently served.

Both UEM Sunrise and UEM Edgenta will fund the investment, through their respective internally-generated funds.

UEM Group Bhd is the common shareholder of UEM Sunrise and UEM Edgenta, holding 66.06% stake and 70.68% stake respectively. Meanwhile, UEM Group Bhd is a wholly-owned unit of Khazanah Nasional Bhd.

UEM Sunrise' share price dropped one sen or 0.88% to close at RM1.13 today, for a market capitalisation of RM5.17 billion; while UEM Edgenta closed unchanged at RM3.36, giving it a market capitalisation of RM2.7 billion.

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