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Wednesday, December 23, 2009

Naza ropes in Jetson for Matrade Centre project

NAZA Group has drafted Kumpulan Jetson Bhd as a partner to develop the country's largest exhibition centre on 62.45 acres of prime federal land off Jalan Duta in Kuala Lumpur.

Naza, through wholly-owned TTDI KL Metropolis Sdn Bhd, and Kumpulan Jetson yesterday sealed a pact to form a 51:49 joint venture (JV) called TTDI Jetson Sdn Bhd.

Kumpulan Jetson will eventually get a RM628 million job to build the proposed Matrade Centre, which will have a one million sq ft of gross floor area.

TTDI Jetson will sign a proper development agreement with TTDI KL Metropolis once Kumpulan Jetson has obtained shareholders' nod for the proposed JV at an extraordinary general meeting to be convened soon.
TTDI Jetson will then award Kumpulan Jetson the contract to build the Matrade Centre for RM628 million, the latter said in a statement to Bursa Malaysia yesterday.

"The company will carry out the planning, design, construction and complete the Matrade Centre," Kumpulan Jetson said.

Naza Group joint executive chairman SM Nasarudin SM Nasimuddin and director SM Faliq SM Nasimuddin are major shareholders of Kumpulan Jetson, with a combined 29.79 per cent stake.

The brothers recently made an unsuccessful bid to buy the remaining Kumpulan Jetson shares not already owned by them.

TTDI KL Metropolis was previously awarded the privatisation of the 62.45-acre land by the government via a deal signed on December 21 this year.

The company will build the Matrade Centre for the government at its own cost.

In return for the exhibition centre, TTDI KL Metropolis has the exclusive rights to develop the land into a mixed project tentatively dubbed the "Naza KL Metropolis Development".

The project will boast of hotels, offices, residences and shopping malls, with a gross development value of RM15 billion over 15-20 years.

Naza and Kumpulan Jetson have estimated that they would have to fork out some RM800 million to render Matrade Centre functional plus the land premium for conversion of the 25ha into commercial status.

Given its 49 per cent shareholding in TTDI Jetson, Kumpulan Jetson said its portion would amount to at least RM392 million.

By Business Times (by Zuraimi Abdullah)

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