Thursday 28 Mar 2024
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KUALA LUMPUR (May 27): UEM Sunrise Berhad and Telekom Malaysia Bhd (TM) will jointly undertake a high rise mixed development project on the telecommunications giant’s Bukit Mahkamah land, along Jalan Raja Chulan in the city centre.

UEM Sunrise said its indirect wholly-owned subsidiary, Sunrise Quality Sdn Bhd (SQSB), will develop service apartments and retail elements on the freehold land measuring 1.69 acres.    

"The project is expected to span over a period of six years. The gross development value (GDV) for the project will be subject to the development order approval and mutual agreement of the parties,” it said in a filing to Bursa Malaysia.

UEM Sunrise noted that the site is near public transport facilities, such as the Masjid Jamek and Plaza Rakyat LRT stations and Pudu Sentral.

TM, in a separate filing, said it is entitled to 5% of the GDV, as well as to receive from SQSB a guaranteed land cost of RM150 million.  

It expects an estimated net gain of RM114.1 million or three sen per share from the project.

The proceeds from the deal will be used for the relocation of TM employees and business operations from the site, and for future capital expenditure and working capital purposes, TM added.  

It said the net book value of the land stands at RM35.88 million as at Dec 31, 2015 and is free from encumbrances. The market value of the land as at December 2014 was between RM147.2 million and RM150 million.

Barring any unforeseen circumstances, the project is expected to be completed in 2022.

TM shares were traded at RM6.70, up one sen or 0.15% after 2.28 million shares exchanged hands, giving it a market value of RM25.18 billion.  

UEM Sunrise's shares were unchanged at RM1.04 today, for a market value of RM4.72 billion.

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