Dijaya acquired Kota Kemuning land from Menteri Besar Selangor and Permodalan Negeri Selangor Berhad

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

OSK Properties acquires land in Shah Alam

KUALA LUMPUR: OSK Properties Bhd (OSKP) has entered into a sale and purchase agreement with Kuala Dimensi Sdn Bhd for two parcels of leasehold commercial land in Bandar Shah Alam, Selangor, for RM15.2 million.

In a filing with Bursa Malaysia yesterday, OSKP said it is planning a commercial development comprising semi-furnished small-office-flexible-office units and two floors of commercial space.

The proposed development is expected to have an estimated GDV of RM190 million.

The acquisition was made through OSKP’s wholly owned subsidiary, Ribuan Ekuiti Sdn Bhd, and will be funded via internally generated funds and external borrowings.

This article first appeared in The Edge Financial Daily, on May 3 2013.

KL-Singapore high-speed rail to enhance growth of Iskandar

PETALING JAYA: The proposed Kuala Lumpur-Singapore high-speed rail link (HSR) will further boost the growth of Iskandar Malaysia in Johor and create more growth areas.

Malaysia Building Society Bhd (MBSB) senior vice-president of corporate business Nor Azam Taib told The Edge Financial Daily: “Since it was initiated six years ago, Iskandar Malaysia has received warm response for most new property launches from both local and foreign buyers.”

The completion of several catalytic projects in Iskandar sent strong signals to investors of the good growth prospects of the area. A recent investor is Kuok Brothers Sdn Bhd, which put in RM182 million.

The Johor property market is expected to remain bullish, driven by the growth of Iskandar in the years to come.

“Iskandar would not only enlarge the economic pie of Johor, but also enhance Malaysia’s strategic position as an investment destination in the Asean region,” said Nor Azam.

He added that there is growing international recognition of Iskandar as Malaysia’s future engine of growth as the KL-Singapore HSR will enhance connectivity between the two countries.

According to Kumar Tharmalingam, executive director of Sunway Bhd, with the travel time from KL to Singapore expected to be reduced to 90 minutes door-to-door via the HSR compared with the current four to five hours via road, more businesses are expected to explore opportunities in both countries.

“There will be a lot of businesses benefiting from the HSR, including financial services, real estate, and oil and gas companies located in Singapore.

There will also be more inter-migration of professionals between the two countries and more joint venture trading, manufacturing and services as talent flows from Singapore to Kuala Lumpur and vice versa,” said Kumar.

He added that the economic benefits to Malaysia will be exponential as investments move from Singapore to Malaysia. “Economic connectivity will push up the quality of life in Kuala Lumpur and parts of Malaysia as well as bring real benefits to both countries. The HSR will ease the pressure on living space in Singapore.”

Knight Frank Malaysia managing director Sarkunan Subramaniam expects more growth areas to emerge along the HSR’s proposed stops. As three of the stops will be within Iskandar, the region is expected to remain the one growth area in Malaysia to have three sub centres.

“Although Johor, as Malaysia’s biggest attraction for foreign investors in the future could be a long-term possibility, Selangor will be tough to beat as its infrastructure development is decades ahead,” said Sarkunan.

From January to March this year, Iskandar recorded RM5.06 billion in new investments with a cumulative committed investment from 2006 to end-March 2013 of RM111.37 billion. Property development contributed RM40.02 billion, comprising residential, retail and industrial products.

Nor Azam, Sarkunan and Kumar will be sharing their views at a panel discussion on “The impact of the KL-Singapore high-speed rail” at The Edge Investment Forum on Real Estate on May 11. The forum is sponsored by MBSB and supported by Sunway.

This article first appeared in The Edge Financial Daily, on May 3 2013.