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Tuesday, December 7, 2010

UEM Land to buy land in Bangi for RM268mil

PETALING JAYA: UEM Land Holdings Bhd said it planned to acquire two parcels of freehold agricultural land in Bangi for RM268.5mil from Inch Kenneth Kajang Rubber Public Ltd Co to develop the land into a comprehensive and integrated township.

It told Bursa Malaysia yesterday that its wholly-owned unit UEM Land Bhd wanted to buy the land measuring 463.51 acres at RM13.30 per sq ft.

These indicative terms have been laid out in an offer letter submitted to Inch Kenneth, but both parties have yet to sign a definitive sale and purchase agreement.

The purchase price is based on an indicative market valuation of the land appraised by Messrs Raine and Horne International Zaki + Partners Sdn Bhd on an as is basis with the benefit of two separate unencumbered freehold titles, with vacant possession of RM248.3mil or RM12.30 psf and the development potential and prospects of the land.

UEM Land Holdings said the acquisition was part of the group's strategic plan to have at least one new township development outside Nusajaya by 2015.

This would enable the group to diversify its development portfolio and revenue sources outside Nusajaya for its long term growth strategy.

The group's purchase of land parcels in Cyberjaya in December 2008 (now known as Symphony Hills) as well as the Sunrise offer are examples of this strategy being implemented, it said in its filing.

The Bangi land, which was an oil palm plantation estate, was a freehold land and the approval to convert the land to mixed development status was obtained by IncKen in 2007.

It was located within the growth area of Bandar Baru Bangi where several new townships such as Alam Sari and Bandar Seri Putra are currently being developed and could be accessed via the North South Expressway and the LEKAS Highway.

Under UEM Land Holdings's preliminary development master plan, the estimated gross development value was estimated at RM2.84bil spanning 10 years.

The proposed acquisition is expected to contribute positively to the group's future earnings and to further enhance its profile as a reputable township developer, it said.

The group plans to fund the purchase from the remaining un-utilised proceeds raised from a rights issue completed in April, internally generated fund and/or if need be, bank borrowings.

The balance un-utilised proceeds earmarked for property development expenditure and general working capital for the group stands at RM168mil on Nov 22.

By The Star

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