IWCity buys 2 parcels of land in Johor for RM90 mil

KUALA LUMPUR (Sept 30): Iskandar Waterfront City Bhd (IWCity) is buying two parcels of freehold land in Pulai, Johor, for RM90 million, for which it plans to develop a mixed project.

The total size of the tracts, both unconverted commercial development lands, are 3.89 hectares (9.55 acres), according to its bourse filing today.

The first tract, measuring 1.72ha, is being acquired for RM39 million via its wholly-owned unit, Success Straits Sdn Bhd (SSSB), who signed a conditional share sale agreement (SPA) with Malgold Construction Sdn Bhd for the buy today.

The price will be satisfied via a cash payment of RM11.7 million, with the remainder 70% or RM27.3 million to be settled by an issuance of 30.33 million shares at an issue price of 90 sen per share.

For the second 2.17ha tract, SSSB inked a conditional SPA with Eight Danga Sdn Bhd to acquire it for RM51 million, which will also be satisfied via a share issuance of 56.67 million new shares.

IWCity said the lands are located along Jalan Sungai Danga, Johor, and about 10 kilometres north-west of Johor Bahru city.

The properties are accessible from Johor Bahru city centre via Jalan Tun Abdul Razak and Johor Bahru Coastal Highway, and are also accessible via Skudai Highway and Perling Expressway, before heading to Johor Bahru Coastal Highway.

Prominent commercial landmarks in the locality are AEON Bukit Indah, Tesco Bukit Indah, Giant and Perling Mall.

"The proposed acquisitions will complement nearby parcels of land being developed by Danga Bay Sdn Bhd, a subsidiary of Iskandar Waterfront Holdings Sdn Bhd, the holding company of IWCity, and Bayou Management Sdn Bhd, an indirect wholly-owned subsidiary of IWCity," it said.

As for the mixed development planned for the lands, it said there is no confirmed detailed plan on it, at this juncture.

However, it expects the project to be financed by internal funds and bank borrowings.

"The majority of the settlement of the total purchase price via the consideration shares, will allow the group to conserve its cash reserves and strengthen its capital base," it said.

IWCity shares were down 1.5 sen (1.6%) at 89 sen today, for a market capitalisation of RM655.66 million. — theedgemarkets.com

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