KUALA LUMPUR (Feb 28): UEM Sunrise Bhd has teamed up with BlackWall Ltd, an Australian public-listed real estate company based in Sydney, to explore leasing opportunities and identify potential commercial and/or retail developments for co-working space.

In a filing with Bursa Malaysia today, UEM Sunrise said its wholly-owned subsidiary UEM Sunrise Properties Sdn Bhd has entered into the proposed JV with Wotso S.E.A. Pty Ltd to form a JV company in Malaysia for the purpose. Wotso S.E.A is wholly-owned by Wotso Workspace Pty Ltd, which in turn is a wholly-owned subsidiary of BlackWall. Wotso is a pioneer in leasing of co-working space in Australia.

However, the proposed JV is subject to approval of both UEM Sunrise Properties' and Wotso S.E.A’s board of directors and shareholders, as well as authorities.

Under the JV, both companies will also jointly manage the operations for the lease of co-working space and serviced office suites.

Both UEM Sunrise and BlackWall will own an equal 50% stake in the JV company, whereby each party will subscribe to 400,000 shares of the company at an issue price of RM1.

The JV company will also enter into a licensing agreement with Wotso for the use of the latter's licence, operations, system and use of other related intellectual property rights for a fee.

"In relation to the JV company’s business, each party undertakes not to be involved directly or indirectly, in other similar businesses in Malaysia, for a period of three years from the JV agreement date or termination of the JV agreement," UEM Sunrise said.

The proposed JV is not expected to have a material effect on the group's earnings and net assets for the financial year ending Dec 31, 2018 (FY18), the filing added.

At 3.08pm, UEM Sunrise shares were down 4 sen or 3.54% at RM1.09, with 1.17 million shares done, bringing a market capitalisation of RM4.99 billion. — theedgemarkets.com

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