UEM Land sells Johor land at RM182 Million

A joint venture led by Kuok Brothers is buying two land parcels in Puteri Harbour, Johor from UEM Land Holdings Bhd to the tune of RM182 million, reported The Sun Daily.

The land parcels, totalling 12.518 acres, will be used for a mixed residential and commercial project.

Along this line, the JV firm known as Southern Marina Development Sdn Bhd has inked a sale and purchase agreement with UEM Land Holdings’ units UEM Land Bhd and Bandar Nusajaya Development Sdn Bhd (BNDSB) for the disposal of the land parcels.

Notably, 70 percent of Southern Marina is owned by Huge Quest Realty Sdn Bhd, while the remaining is held by Khazanah Nasional Bhd’s fully-owned subsidiary Tanjung Bidara Ventures Sdn Bhd. Huge Quest Realty is 60 percent owned by Kuok Brothers Sdn Bhd and PPB Group Bhd holds the balance.

According to UEM Land Holdings’ filing to the local stock exchange, the two land parcels were bought by BNDSB between 1994 and 1995 at a total cost of RM1.8 million. As of 31 2012, the overall net book value of the land stood at RM74 million.

The transaction is due to be completed within one year.

In a separate filing, PPB noted the RM52.6 million proposed subscription for a 40 percent stake in Huge Quest Realty will allow the company to take part in the latter’s property projects in Iskandar Malaysia.

“The proposed subscription is also in line with the PPB group’s strategy of expanding its property-based activities and is expected to contribute positively to the group's results in future.”

Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my