IJM Land takes 50% of Nasa Land

KUALA LUMPUR (Mar 22): IJM Land Bhd has acquired 50% equity interest in Nasa Land Sdn Bhd, a subsidiary of Aspirasi Ratna Sdn Bhd for RM51 million, in order to expand its landbank.

In a statement to Bursa Malaysia, the group said it had entered into a conditional share sale and purchase agreement with Aspirasi Ratna to acquire a total of one million ordinary shares at RM1 each in Nasa Land for a total cash consideration of RM51 million.

"The acquisition represents an excellent opportunity for the group to strengthen its presence and further expand its property development business in Johor," it said.

Nasa Land is a subsidiary of Aspirasi Ratna, owned by Tan Sri Tan Hua Choon, Tan Han Chuan, Tan Ching Ching and Puan Sri Ong Poo Choi.

Nasa Land is the land owner and developer of the Desa Palma, a mixed development project in Mukim Tebrau, Johor Bahru, and it has 39ha of undeveloped land in the area.

Nasa Land recorded a loss of RM833,000 for FY11 ended June 30 on the back of RM269,000 in revenue, higher than the loss recorded in 2010 of RM801,000, on the back of RM1.06 million in revenue.

IJM Land decided to purchase the loss-making company after taking into consideration the future development potential of the remaining undeveloped land Nasa Land holds.

"The acquisition is in line with the group's strategy to enhance its earnings stream as Nasa Land's project is in... a prime location within the Tebrau corridor surrounded by matured residential areas," it said, adding that growth is expected to be significant in Johor since the prime minister announced 59 projects expected to bring in RM139.3 billion in investment.

IJM Land said it will be funding the acquisition through internally-generated funds.