06 July 2014

E&O buys land for RM1.5bil project

  06 July 2014

PETALING JAYA: Property developer Eastern & Oriental Bhd (E&O) is acquiring 55ha of freehold land in Elmina West, part of the City of Elmina, from Sime Darby Property Bhd, the unlisted property arm of Sime Darby Bhd, in a deal worth RM239.8mil.

The deal would see E&O develop the land into a “wellness and livable city” with an estimated baseline gross development value (GDV) of RM1.5bil.

As part of the agreement, the company would share 20% of the proceeds with Sime Darby should the value exceed the baseline GDV.

Sime Darby group chief operating officer Datuk Seri Wahab Maskan said in a joint press release that E&O had the expertise and capability to create a niche development with a distinct wellness characteristic that would enhance the 2,023ha City of Elmina near Shah Alam.

“What’s more, this mutually beneficial decision shows that both parties are committed to collaborate on good prospects to develop distinctive products based on our unique strengths,” he added.

E&O group managing director Datuk Terry Tham said that the deal represented an excellent opportunity for the company to leverage on its “experience and expertise in developing premier properties and to tap on the increasing interest, heightened aspirations and growing demand for wellness to be incorporated into our lifestyles”.

Elmina West fringes a 1,093ha forest reserve on its western border and the 121ha Elmina Central Park in the south.

Both parties had in September 2013 signed a memorandum of agreement to facilitate the negotiation on the terms of the agreement.

The Elmina City Centre (ECC), which will be the main commercial hub, Wellness Cluster and shopping destination of the City of Elmina, intersects with E&O’s proposed development.

The ECC is expected to be a catalyst for economic growth along the Guthrie Corridor Expressway, fuelled by the local business and residential communities within the City of Elmina as well as the existing population in the neighbouring residential areas of Denai Alam and Bukit Subang.

The City of Elmina will enjoy excellent connectivity and is easily accessible via several major highways.

Connectivity to this area will be further enhanced with the proposed new Damansara-Shah Alam Elevated Expressway that will provide linkages to areas such as Subang, Kota Damansara and Mutiara Damansara, which is expected to be completed in 2019.



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