06 July 2014

Sime Darby Property seals RM239.8m deal with E&O

  06 July 2014


KUALA LUMPUR: Sime Darby Property Bhd has sealed a deal to sell 135 acres of freehold land in Elmina West, Selangor to Eastern & Oriental Bhd for RM239.8mil.

Sime Darby said on Friday the 135 acres of freehold land in Elmina West is part of the larger 5,000 acres of City Of Elmina which will be developed into a Wellness and Liveable City.

“It is expected that the actual gross development value (GDV) would potentially be higher than the estimated baseline GDV of RM1.5bil,” it said.

As part of the deal, E&O would share the amount of the actual GDV that exceeds the baseline GDV with an agreed sharing ratio of 80:20, whereby E&O will pay Sime Darby 20% of the enhanced GDV.

The agreement was signed between Sime Darby Property’s unit Sime Darby Elmina Development Sdn Bhd and E&O’s unit Eastern & Oriental Express Sdn Bhd.

To recap, in September 2013, the two parties signed a memorandum of agreement to enable both parties to negotiate the terms of the sale and purchase agreement.

Group chief operating officer of Sime Darby and managing director of Sime Darby Property Datuk Seri Wahab Maskan said E&O has the expertise and capabilities to create a niche development with a distinctive wellness characteristic that will enhance the City of Elmina.

“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. This will undoubtedly enable Sime Darby Property to enhance the value of our landbank, while we build sustainable communities,” he said.

E&O group managing director, Datuk Terry Tham Ka Hon said E&O was looking forward to take part in developing Elmina West in the City of Elmina “as it represents a vital new growth engine for us in the Klang Valley”.

“At a strategic level, our Elmina West venture reflects the spirit of collaboration between E&O and Sime Darby that is aimed at establishing synergistic benefits and creating value for shareholders of both companies,” Tham said.

E&O’s development land in Elmina West fringes a 2,700 acre forest reserve on the west and on the southern section, the 300-acre Elmina Central Park.

~ By THE STAR

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