L&G to develop land to be acquired from former minister

KUALA LUMPUR: Land and General Bhd (L&G) has entered into a joint-venture (JV) agreement with Mayland Parkview Sdn Bhd, a company linked to its major shareholder, to develop a piece of land in Ampang that the JV will acquire from a firm controlled by former minister Tan Sri Abdul Kadir Sheikh Fadzir.

In an announcement on Nov 3, L&G proposed a 50:50 JV between its wholly owned subsidiary Synergy Score Sdn Bhd (SSSB) and Forward Splendour Sdn Bhd (FSSB) of Mayland.

The JV company — Elite Forwards Sdn Bhd — will acquire the land measuring 10,546 sq m (about 2.6 acres) from Sazean Holdings Sdn Bhd for RM55 million.

Abdul Kadir holds 20% of Sazean while the remaining 80% is held evenly by Meor Huzarin Sazali Abdul Kadir and Meor Zed Zulkifli Abdul Kadir.
Mayland has 16.94% in L&G while the Employees Provident Fund (EPF) is the second largest shareholder with close to 10%.

According to the announcement, the land is strategically located in a prime area in Ampang and will give the group the opportunity to carry on with its business of property development.

The land is charged to a financial institution and earmarked for development of commercial and condominium serviced residences.

According to L&G, the proposed JV is to bank on its partner’s track record and expertise in the high-rise serviced apartments sector. In addition L&G will be able to leverage on its partner’s overseas contacts to ensure the successful marketability of the proposed project.

This article appeared in The Edge Financial Daily, Nov 4, 2009.