KUALA LUMPUR (Nov 17): UEM Sunrise Bhd via three indirect wholly-owned subsidiaries, Nusajaya Rise Sdn Bhd (NRSB), Symphony Hills Sdn Bhd (SHSB) and Nusajaya Heights Sdn Bhd (NHSB) had today entered into eight sale and purchase agreements (SPAs) with PGB Landmark Sdn Bhd (PGB Landmark), a wholly-owned subsidiary of Paragon Globe Bhd (PGB), for the disposal of freehold lands measuring in aggregate approximately 46.9 ha for a total consideration of RM146.1 million.

NRSB and SHSB collectively entered into five SPAs with PGB Landmark for the disposal of 19.52 ha of freehold lands in Mukim Tanjung Kupang, Daerah Johor Bahru, Johor.

Further, NRSB entered into two SPAs with PGB Landmark for the disposal of 26.42 ha of freehold lands in Mukim Tanjung Kupang.

NHSB has also entered into a SPA with PGB Landmark for the disposal of 0.96 ha of freehold land in Mukim Pulai, Daerah Johor Bahru, Johor (all eight land parcels collectively referred to as the Lands).

UEM Sunrise stated in a media release that the disposals of the Lands are in line with its three-phase strategic turnaround plan: Triage, Stabilise and Sustain, particularly under the first phase, Triage, to transform the company into a balanced real estate player with the immediate goal of strengthening financial performance via, among others, monetisation of non-strategic lands.

“Our immediate focus in Johor is to activate more residential development projects. This disposal will allow us to monetise some of our land banks in Johor while still leveraging on the economic activities that will be created from the proposed industrial development by PGB Landmark to boost the demand for our planned residential developments within the vicinity of the Lands,” said UEM Sunrise chief executive officer Sufian Abdullah.

Paragon Globe executive chairman Datuk Sri Edwin Tan Pei Seng said: “The Land acquisitions will grant PGB with opportunities to create greater economic value to Johor Bahru as well as increase our earnings potential over the medium to long term.”