Damansara Realty gets nod for land acquisition from Johor Corp

PETALING JAYA: Damansara Realty Bhd's associate company DAC Properties has been given the nod by the Economic Planning Unit to acquire 53.14 acres of land inTebrau, Johor for RM130.3 million from Johor Corp Bhd, as part of a settlement agreement between the two parties.
The group said in a Bursa Malaysia filing that the aggregate settlement sum of RM141.53 million payable by Damansara Realty Johor Sdn Bhd to Johor City Development Sdn Bhd and Johor Land Bhd has been reduced to RM11.23 million.
"With the completion of the acquisition, Damansara Realty has met almost all its obligations under the settlement agreement with JCorp, and will reduce the group's net current liabilities by RM132 million," said Group CEO Brian Iskandar Zulkarim in a statement.
Brian added that the completion will mean a stronger balance sheet for the group as its net current liability will be slashed to RM23 million from RM155 million.
The settlement comprises two acquisitions of land by Damansara Realty from Johor Corp for RM141.5 million cash and a land swap.
DAC is a joint venture company between Damansara Realty and Hong Kong-listed Country Garden Logistics Sdn Bhd.
Located in Tebrau, Johor Bahru, the land is part of Damansara Realty's 63-acre Central Park being developed in partnership with Country Garden within the strategically located Taman Damansara Aliff along the Pasir Gudang Highway.
"Damansara Realty will still own about 10 acres within Taman Damasara Aliff after Central Park is completed. With this landbank acquisition and the good progress on Central Park, Damansara Realty is on track to strengthen its property development arm", said Brian.
On another note, the group has also received the approval to embark on a redeemable convertible notes programme, which will see it raising up to RM150 million to fund the settlement and boost its cash flow.
It will aslo enable the group to raise working capital to strengthen its integrated facilities management and project management and consultancy segments, which are currently the main drivers of revenue growth.