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Friday, October 2, 2009

UM Land gets nod for land acquisition

Seri Austin, a residential development of UM Land in Johor.

KUALA LUMPUR: Shareholders of United Malayan Land Bhd (UM Land), at its EGM, have approved the purchase of 629.25 acres in Bandar Pulai Jaya, Johor, for RM233mil cash.

As per earlier reports, the company said in a statement yesterday that the land would be for a proposed mixed development.

It will comprise industrial and technology parks, commercial, logistics and transportation hubs as well as supporting residential components.

Shareholders also approved UM Land’s proposal to jointly develop the land with Tradewinds Johor Sdn Bhd (via a 51:41 joint-venture company, Extreme Consolidated Sdn Bhd, held by UM Land and Tradewinds respectively).

The proposed development is estimated to take five years from completion of the proposed acquisition with a gross development value of RM718mil.

A local property analyst contacted by StarBiz said the venture was a good move, despite the sluggish residential property market in Johor.

“The project will take a few years to be developed and the residential property market would have bounced back by then,” he said, adding that he expected a turnaround by the middle of next year.

“Furthermore, UM Land has the holding power to not launch any projects at the moment,” the analyst said.

Payment for the land acquisition would be made under a deferred arrangement over a two-year period.

By The Star (by Eugene Mahalingam)

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