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BRDB to jointly develop Residential North in UEM Land in Nusajaya, Johor

KUALA LUMPUR: Bandar Raya Developments Berhad (BRDB) announced that it is acquiring a 60% stake in Haute Property Sdn Bhd in a move to leverage BDRB's property development expertise to participate in the growth of the Iskandar Development Region.

BRDB via its wholly owned subsidiary, Ardent Heights Sdn Bhd, has entered into a conditional Sales of Shares Agreement with Limitless Holdings Pte Ltd to purchase the entire shareholding of Limitless in Haute Property, comprising 600,000 ordinary shares of RM 1.00 each, the group announced in a filing with Bursa Malaysia on Thursday, July 8.

The company said the reason for the acquisition is to participate with UEM Land Bhd in the proposed development of ‘Residential North’ in the Puteri Harbour development in Nusajaya, Johor. This is consistent with BRDB’s business strategy of improving profitability for the BRDB Group and increasing shareholder value in the long term.

Haute has been granted the development rights to undertake the 111-acre development by UEM Land in a development agreement dated December 19, 2007 between UEM Land (the master developer for the Puteri Harbour development) and Bandar Nusajaya Development Sdn Bhd (the registered owner of the land).

The proposed development is expected to be carried out in six phases over seven years with the construction of Phase 1 expected to commence in 3Q 2011.

Based on a preliminary feasibility study, the proposed development is expected to generate a gross development value (GDV) of about RM2.3 billion and gross development profit (GDP) of about RM700 million.

The proposed share purchase is expected to be completed by November 2010.
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