UEM Sunrise selling land in Johor to Country View for RM310m

KUALA LUMPUR: UEM Sunrise Bhd via its wholly owned subsidiary Bandar Nusajaya Development Sdn Bhd today inked a sale and purchase agreement with Country View Resources Sdn Bhd, a wholly owned subsidiary of Country View Bhd, for the sale of 163.9 acres of land in Iskandar Puteri, Johor, for RM310 million.
The land will be developed into a mixed commercial project.
UEM Sunrise managing director and CEO Anwar Syahrin Abdul Ajib said proceeds from the land sale will be used to reduce its gearing levels. The company will also use the proceeds for infrastructure investments in Puteri Harbour and to acquire more landbank in the Klang Valley.
UEM Sunrise has a landbank of 13,000 acres in Johor, Perak and the Klang Valley. The sale of land to Country View leaves UEM Sunrise with a remaining 10,000 acres of landbank in the Southern Region, including plots that have been identified for joint-venture developments. This translates into a potential gross development value of RM94 billion.
“At this point in time, it’s about bringing in more investors as the master developer of Iskandar Puteri,” Anwar Syahrin told a press conference after the signing ceremony here today.
On whether it will be disposing of more land, he said: “We look at who can bring what to the table, on a case-by-case basis. This also allows us to look at our portfolio of landbank.”
UEM Sunrise’s business relationship with Country View dates back to 2001.
The land purchase by Country View brings the total land area developed or to be developed by Country View in Iskandar Puteri to 628 acres.
Country View has developed over 15,000 units of various types of properties including residential and commercial properties, of which more than 5,000 units were low-cost houses in Johor. Its executive director Law Kit Tat said it has been in the property business since 1984. It has emerged stronger from challenging economic and property cycles over the years and is buying more land.
On Budget 2018, Anwar Syahrin said the 50% tax exemption for rental income amounting to up to RM2,000 a month would encourage people to buy property for investments but noted that UEM Sunrise’s products are mostly in the RM500,000 or higher range.