UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) marks the year’s end by announcing that its indirect wholly-owned subsidiary, Nusajaya Rise Sdn Bhd entered into sale and purchase agreements with Nusajaya Tech Park Sdn Bhd (“NTPSB”), a joint venture company owned by UEM Land Berhad, a wholly-owned subsidiary of the Company and Ascendas Land (Malaysia) Sdn Bhd, an indirect subsidiary of CapitaLand Development of Singapore, for the sale of lands measuring approximately 94.9 hectares or 234.5 acres in Gerbang Nusajaya, Iskandar Puteri, Johor for a total consideration of RM289.2 million.
The transaction is an expansion of the existing Nusajaya Tech Park, a world-class integrated industrial park with eco-friendly infrastructure, designs and facilities with its well-maintained landscape and facilities, currently home to many multinational corporations, including small and medium-sized enterprises. NTPSB is the developer of Nusajaya Tech Park. With the acquisition of these extended lands, NTPSB will own and develop an industrial park measuring a total size of 150.1 hectares or 371.0 acres, offering an estimated total GDV of RM1.5 billion, to be developed over an anticipated development timeframe of eight to ten years.
“Our collaboration with CapitaLand is not new. We have partnered up with CapitaLand since 2012 when we embarked on creating a catalytic development in Iskandar Puteri, befitting our role as master developer for the township. CapitaLand had the expertise and track record which complemented our requirements. The Nusajaya Tech Park that is in operation today is a testimony to the successful collaboration. Its existence has contributed a significant impact to Gerbang Nusajaya and Iskandar Puteri as a whole. We are positive that the expansion of new industrial phases in Nusajaya Tech Park will further stimulate economic activity, attract investors, and allow more companies to relocate to Iskandar Puteri. It will also further strengthen our commitment to attract foreign direct investments into Johor, in line with the State Government’s aspirations to feature Johor as the desired destination hub for investments and development. This, in turn will create further employment opportunities in the Southern region,” said UEM Sunrise, Chief Executive Officer, Sufian Abdullah.
He continued, “The park’s close proximity to the soon-to-be-completed Gerbang Nusajaya Interchange, which will connect to the Second Link Expressway, will allow commuters and industrial players to enter Singapore via the Ayer Rajah Expressway. The benefits of this connectivity extend even beyond the region. Among industry players who have presence in Nusajaya Tech Park is Telekom Malaysia Berhad through its TM One Iskandar Puteri Data Centre, GKN Aerospace Malaysia and Stern-Wywiol Gruppe through its manufacturing unit, SternMaid Asia Pacific”.
This transaction and collaboration are in alignment with the Company’s three-pronged turnaround strategic plan; Triage, Stabilise and Sustain. The proceeds to be received from the transaction and the potential creation of future development profits via NTPSB are among the initiatives and measures put in place by the Company to navigate current market conditions, strengthen product portfolio and streamline core businesses, among others.