UM Land buys land in Iskandar Malaysia

KUALA LUMPUR: United Malayan Land Bhd (UM Land), through Extreme Consolidated Sdn Bhd (ECSB), has acquired 251.6ha in Bandar Baru Pulai Jaya, Iskandar Malaysia, for RM233mil.

In a statement yesterday, UM Land said ECSB had signed a conditional sale and purchase agreement (SPA) with Ambang Budi Sdn Bhd, a wholly-owned subsidiary company of Tradewinds Corp Bhd, and Hartaplus Realty Sdn Bhd for the land.

UM Land and Tradewinds Johor Sdn Bhd also signed a subscription and joint-venture agreement to govern ECSB with percentage shareholdings of 51:49 and to participate in the development of the land. The parties also signed a call-option agreement granting UM Land an option to purchase the remaining 49% of the total issued and paid-up share capital of ECSB anytime before the completion of the SPA.

Group chief executive officer Anthony Yap said the acquisition was in line with the group’s strategy to acquire projects that could generate a reasonable revenue and profit.

UM Land said the project was expected to yield a revenue of about RM659mil over a five-year development period and would contribute positively to the group’s future earnings.

By The Star