PETALING JAYA, 30 May: UEM Sunrise Bhd and Telekom Malaysia Bhd (TM) will jointly develop a high-rise mixed development project on a 1.69-acre site belonging to TM in Kuala Lumpur.
Last Friday, TM entered into the joint land development agreement (JLDA) with Sunrise Quality Sdn Bhd (SQSB), an indirect wholly-owned unit of UEM Sunrise to undertake the project consisting of serviced apartments and retail elements.
Under the JLDA, SQSB will pay TM a guaranteed land cost of RM150 million as well as a 5% share of the gross development value (GDV) of the project which will be determined later.
The land consideration was arrived at on a willing-buyer willing-seller basis which was achieved after an open tender exercise.
SQSB will be fully responsible for the planning and development of the land which is strategically located close to the Kuala Lumpur City Centre.
UEM Sunrise executive director Datuk Izzaddin Idris said the company hope to secure the necessary approvals over the next 12 to 24 months.
“This deal is in line with our strategy to diversify as well as grow our business in the central region and we expect this project to contribute positively to our medium term growth,” he said.
TM, in a separate filing, said it expects an estimated net gain of RM114.1 million or 3 sen per share from the project.
“The proceeds from the proposed JLD shall be used for the relocation of TM employees and business operations from the Bukit Mahkamah land,” TM said.