IJM Corp to buy land in Penang for RM402.8m

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KUALA LUMPUR: IJM Corp Bhd has bought the remaining shares in its joint venture (JV), Aura Hebat Sdn Bhd (AHSB), from partner Perennial Penang Pte Ltd for an undisclosed amount. AHSB is in the process of acquiring a 32.76-acre (13.2ha) parcel of land located within IJM Corp’s (fundamental: 1.1; valuation: 1.4) existing The Light Waterfront development in Penang.

In a filing with Bursa Malaysia yesterday, IJM Corp said The Light Waterfront Sdn Bhd, a wholly-owned subsidiary of IJM

Properties Sdn Bhd, which in turn is a wholly-owned unit of IJM Corp through IJM Land Bhd, yesterday acquired one share representing a 50% stake in AHSB.

“AHSB will acquire the land from Jelutong Development Sdn Bhd, an 80%-owned subsidiary of IJM Properties for RM402.8 million cash, subject to, among others, the receipt of documents of title to the property from the relevant Penang authorities,” the group said.

The land will be developed into a large-scale integrated waterfront mixed-use project comprising a shopping mall and thematic shops, residential towers, an office tower, two hotels and a convention centre with a total gross floor area of about 4.1 million sq ft.

The Light Waterfront development is an integrated project, spreading across 152 acres located on the eastern coast of Penang island.

IJM Corp shares declined 10 sen or 1.34% to close at RM7.38 yesterday, giving it a market capitalisation of RM13.33 billion.

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This article first appeared in The Edge Financial Daily, on April 22, 2015.