PROPOSED ACQUISITION BY SAPPHIRE INDEX SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF DIJAYA, OF LEASEHOLD LAND MEASURING APPROXIMATELY 1,172 ACRES IN AN AREA PREVIOUSLY KNOWN AS “CANAL CITY” WITHIN THE VICINITY OF KOTA KEMUNING IN THE STATE OF SELANGOR
Dijaya had on 15 April 2013 entered into a sale and purchase cum development agreement (“Agreement”) with Menteri Besar Selangor (Pemerbadanan) (“MBI” or “Registered Owner”) and Permodalan Negeri Selangor Berhad (“PNSB” or “Beneficial Owner”) for the proposed acquisition cum development of eleven (11) parcels of leasehold lands, all in Mukim Tanjong Dua belas, District of Kuala Langat, State of Selangor, measuring approximately 4,743,986.21 square metres (51,064,516.80 square feet) (“Lands”) for a total cash consideration of RM1,297,259,264 (“Total Consideration”)
The Total Consideration comprises the following:
(a) Purchase price for the Lands in the sum of RM587,000,000 (“Purchase Price”);
(b) Interest of 5% per annum calculated on a daily basis and compounded until payment of the Purchase Price of up to RM252,000,000, which is subject to waiver.
(c) Gross development value (“GDV”) and profit sharing totalling a minimum amount of RM458,259,264.
The Lands are located in the vicinity of established townships such as Kota Kemuning, Putra Heights as well as the up and coming Bandar Rimbayu with good accessibility, via four (4) major highways to other parts of the Klang Valley, including the Kuala Lumpur City Centre, Subang, Petaling Jaya, Damansara, Puchong and Shah Alam. In addition, with the completion of the West Coast Expressway (WCE), the accessibility of the Lands will be further enhanced.
The Lands are situated next to the proposed township development of Bandar Rimbayu by IJM Land Berhad spread over 1,879 acres, which experienced overwhelming interest in its recent launch.
Dijaya Group is proposing to develop the Lands into an integrated self-contained townshipcomprising of amongst others, landed houses, condominiums, serviced apartments, shop offices, corporate office towers, shopping malls, private hospitals and international schools to meet the increasing demand for wholesome and balanced lifestyles to attract the middle and middle upper class income earners.
The Group is proposing to develop the Lands into a mixed development comprising of residential and commercial properties which is expected to commence in the second year following the unconditional date of the Agreement and span over a period of up to twenty (20) years. Based on the marketability and development potential of the surrounding areas of the Lands, management is expecting a GDV of at least RM8.6 billion for the Project.
The preliminary indicative development cost of the Project is estimated to range between 50% to 60% of GDV. However, the exact quantum of the development cost has not been determined at this juncture, pending finalisation of a detailed development plan for the Lands. The development of the Project is expected to be funded via internally-generated funds and/or bank borrowings. The final breakdown will be decided at a later stage taking into consideration the Group’s gearing level, interest costs as well as internal cash requirements for its businesses.
With the proposed development of the Lands over a period of up to twenty (20) years and a potential GDV of at least RM8.6 billion, the Proposed Acquisition will facilitate positive contributions to the Group’s future revenue stream and profitability.
Source Bursa Annoucement April 15, 2013
Dijaya had on 15 April 2013 entered into a sale and purchase cum development agreement (“Agreement”) with Menteri Besar Selangor (Pemerbadanan) (“MBI” or “Registered Owner”) and Permodalan Negeri Selangor Berhad (“PNSB” or “Beneficial Owner”) for the proposed acquisition cum development of eleven (11) parcels of leasehold lands, all in Mukim Tanjong Dua belas, District of Kuala Langat, State of Selangor, measuring approximately 4,743,986.21 square metres (51,064,516.80 square feet) (“Lands”) for a total cash consideration of RM1,297,259,264 (“Total Consideration”)
The Total Consideration comprises the following:
(a) Purchase price for the Lands in the sum of RM587,000,000 (“Purchase Price”);
(b) Interest of 5% per annum calculated on a daily basis and compounded until payment of the Purchase Price of up to RM252,000,000, which is subject to waiver.
(c) Gross development value (“GDV”) and profit sharing totalling a minimum amount of RM458,259,264.
The Lands are located in the vicinity of established townships such as Kota Kemuning, Putra Heights as well as the up and coming Bandar Rimbayu with good accessibility, via four (4) major highways to other parts of the Klang Valley, including the Kuala Lumpur City Centre, Subang, Petaling Jaya, Damansara, Puchong and Shah Alam. In addition, with the completion of the West Coast Expressway (WCE), the accessibility of the Lands will be further enhanced.
The Lands are situated next to the proposed township development of Bandar Rimbayu by IJM Land Berhad spread over 1,879 acres, which experienced overwhelming interest in its recent launch.
Dijaya Group is proposing to develop the Lands into an integrated self-contained townshipcomprising of amongst others, landed houses, condominiums, serviced apartments, shop offices, corporate office towers, shopping malls, private hospitals and international schools to meet the increasing demand for wholesome and balanced lifestyles to attract the middle and middle upper class income earners.
The Group is proposing to develop the Lands into a mixed development comprising of residential and commercial properties which is expected to commence in the second year following the unconditional date of the Agreement and span over a period of up to twenty (20) years. Based on the marketability and development potential of the surrounding areas of the Lands, management is expecting a GDV of at least RM8.6 billion for the Project.
The preliminary indicative development cost of the Project is estimated to range between 50% to 60% of GDV. However, the exact quantum of the development cost has not been determined at this juncture, pending finalisation of a detailed development plan for the Lands. The development of the Project is expected to be funded via internally-generated funds and/or bank borrowings. The final breakdown will be decided at a later stage taking into consideration the Group’s gearing level, interest costs as well as internal cash requirements for its businesses.
With the proposed development of the Lands over a period of up to twenty (20) years and a potential GDV of at least RM8.6 billion, the Proposed Acquisition will facilitate positive contributions to the Group’s future revenue stream and profitability.
Source Bursa Annoucement April 15, 2013
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