KUALA LUMPUR: UEM Sunrise Bhd’s proposed development of a Motorsports City in Nusajaya, Johor, will now cover a land area of 300 acres (121ha) instead of the 270 acres that were originally proposed in 2012.

In a Bursa Malaysia filing yesterday, UEM Sunrise said the joint venture (JV) agreement  entered into in 2012 had become unconditional upon fulfilment of its conditions’ precedent.

“Following the above, FASTrack Autosports (Iskandar) Pte Ltd (formerly known as FASTrack Autosports Pte Ltd) now owns 70% of the issued and paid up share capital of Fastrack Iskandar Sdn Bhd (FISB) and UEM Sunrise’s shareholding in FISB has reduced to 30%,” it said.

“Accordingly, FISB has ceased to be a subsidiary of UEM Sunrise on Dec 30,” it added.

To recap, in 2012, UEM Sunrise (then known as UEM Land Holdings Bhd) entered into a JV with  FASTrack Autosports (Iskandar) to purchase and jointly develop the land located in the Gerbang Nusajaya, through a special purpose company established by UEM Sunrise called Crimson Carnival Sdn Bhd.

The proposed development is intended to be a motorsport city consisting of components such as showrooms, automotive retail, workshop, test track, go-kart track, and all other automotive related trades and activities.

UEM Sunrise shares closed 3 sen or 2.05% down at RM1.43 yesterday, with a market capitalisation of RM6.5 billion.

This article first appeared in The Edge Financial Daily, on December 31, 2014.