KUALA LUMPUR: Eastern & Oriental Bhd (E&O) marked its third collaboration with Japanese property company Mitsui Fudosan Co Ltd by inking an agreement to jointly develop a 5,812 sq m freehold parcel of land at the intersection of Jalan Conlay and Jalan Kia Peng in Kuala Lumpur. The joint venture (JV) is to build luxury high-rise serviced apartments.
“Backed by the success of our earlier collaborations with Mitsui, we are confident that this latest partnership will deliver yet another exemplary project of innovation and excellence,” said E&O deputy managing director Eric Chan Kok Leong.
Mitsui executive director Tomoo Nakamura said the company is proud of its collaborations with E&O and views the project as sharing its expertise with Malaysia.
E&O joined Mitsui Fudosan in a marketing collaboration in 2011 but this is its second residential development together.
The JV to develop the land will be effected through, among others, a shareholders’ agreement and a sale and purchase agreement between Samudra Pelangi Sdn Bhd (Samudra), an indirect wholly-owned subsidiary of E&O; and Mitsui Fudosan Asia Pte Ltd (MFA), an indirect wholly-owned subsidiary of Mitsui Fudosan Co Ltd.
The site is held by Patsawan Properties Sdn Bhd (Patsawan), a wholly-owned subsidiary of Samudra. The JV entails the acquisition of a 49% stake in Patsawan by MFA. After the JV, Samudra will continue to hold the remaining 51% stake in Patsawan.
The project is within an exclusive residential enclave among diplomatic corps, and the city’s business, retail and cultural districts.
In 2011, a marketing collaboration was signed for E&O properties to Mitsui’s high-net-worth clientele in Japan. The tie-up led to a 2013 partnership in which the two companies developed the 38-storey The Mews Serviced Residences Kuala Lumpur.
This article first appeared in The Edge Financial Daily, on March 27, 2015.
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