UEM Sunrise to sell Johor land to AME Elite Consortium for RM434m

UEM Sunrise to sell Johor land to AME Elite Consortium for RM434m
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KUALA LUMPUR (Oct 9): UEM Sunrise Bhd has entered into agreements to sell 169.8 acres of land in Johor to AME Elite Consortium Bhd for RM434.3 million.

In a bourse filing, UEM Sunrise disclosed that its wholly-owned subsidiary UEM Land Bhd and an indirect wholly-owned subsidiary Nusajaya Heights Sdn Bhd had entered into two separate heads of agreement (HOAs) with AME Elite Consortium units.

The first HOA (HOA 1) was signed with Pentagon Land Sdn Bhd and Greenhill SILC Sdn Bhd. The second HOA (HOA 2) was signed with Pentagon alone.

The HOAs are for the disposal of 72 freehold industrial plots at Phase 3 of the Southern Industrial & Logistics Clusters (SILC) in Iskandar Puteri, Johor, where UEM Sunrise is the owner and master developer.

HOA 1 governs two sale and purchase agreements (SPAs). The first SPA involves 35 non-Bumiputera industrial lots worth RM215.3 million, while the second SPA involves 34 Bumiputera industrial lots worth RM200.8 million.

Meanwhile, HOA 2 is for the disposal of three non-Bumiputera lots worth RM18.2 million.

On the rationale for the HOAs, UEM Sunrise said for phase 3 of the SILC, it has decided to collaborate with AME Elite Consortium to develop an integrated industrial park development.

“This allows UEM Sunrise the ability to monetise the industrial park at a faster rate as compared to the sale of individual plots.

“Negotiations between the parties have commenced with respect to the definitive agreements. Pending the conclusion of the negotiations, the parties have agreed to document their intentions as well as the salient terms to be incorporated in the definitive agreements via the signed HOAs,” UEM Sunrise noted.

The HOAs will be valid for 30 days.

At noon market break, UEM Sunrise was unchanged at 38 sen, valuing it at some RM1.72 billion. Meanwhile, AME Elite Consortium was up by 1.05% or two sen at RM1.92, valuing it at some RM820.06 million. 

Lam Jian Wyn