KUALA LUMPUR (May 31): Tanco Holdings Bhd and Eduspec Holdings Bhd have entered into a 20-year land lease agreement to lease a freehold commercial land in Negeri Sembilan for Eduspec to construct and operate the edutainment theme park.
Dubbed STEM EduPark, the theme park aims to introduce science, technology, engineering and mathematics based education to the public. The STEM EduPark will comprise general amenities, STEM discovery zone, activity zone and STEM hubs zone.
In a bourse filling, Tanco said its wholly-owned subsidiary Palm Springs Development Sdn Bhd has entered into a lease agreement with Time IT in E (Sabah) Sdn Bhd, a wholly-owned subsidiary of Eduspec Holdings Bhd, to lease Time IT a 7.5454 acres land in Port Dickson.
Additional to the lease agreement, Palm Springs shall grant Time IT an option to purchase the land at an agreed purchase price of RM20 million, provided such call option must be exercised by Time IT within the first five years from the date of commencement of the lease.
The 20 years lease agreement comprise an initial tenure of 10 years commencing from the lease commencement date, with two options to the lessee (Time IT) to extend the lease thereafter for a further five years per extension.
The rental fees for the first ten years is RM100,000 a month. Subsequently, the rental fees for the first five-year extension term would be increased to RM120,000 per month, and for the second five-year extension term, the rental fee climbs further up to RM132,000 per month.
Tanco said the rational for the lease agreement is to take cognisance of Eduspec's experience and expertise in the education industry. Tanco views Eduspec as a strategic partner in the development of Dickson Bay.
“Such partnership will be mutually beneficial, whereby the development and operation of the STEM EduPark by Eduspec will enhance the appeal of surrounding areas and accordingly, elevate the value of the group’s neighbouring developments at Dickson Bay, whereas the hotel and service suites to be developed by the group will provide patronage to the edutainment theme park, Tanco said.
“In the event that the lessee exercises the lease call option, Tanco will unlock and realise the value of the land with a net gain on disposal of RM9.80 million via disposal to the lessee at an agreed purchase price of RM20 million, representing a slight premium of 1.42% over the indicative market value of the land in February 2019 of RM19.72 million. Otherwise, the group will continue to derive rental income from the lease,” Tanco added.