UEM Land sets up Singapore subsidiary

PETALING JAYA: UEM Land Holdings Bhd has set up a wholly-owned subsidiary in Singapore, which is perceived as a move for the property group to undertake development projects across the causeway.

In an announcement to Bursa Malaysia, UEM Land said the new subsidiary called Sunrise MS Pte Ltd, will be a wholly-owned unit of Sunrise Bhd. The latter is a subsidiary of UEM Land.

"The principal activity of Sunrise MS is to provide consultancy, advisory and technical services relating to project development in the Republic of Singapore," the group said in the announcement.

To recap, both the Malaysian and Singapore governments have agreed on a land swap. Under the point of agreement, the Malaysian government will relinquish its rights to the land in Tanjong Pagar where KTM Bhd's (KTMB) train terminal is located in return for tracts in the prime area of South Marina and Ophir-Rochor.

The land will be developed by Khazanah Nasional Bhd together with its Singapore counterpart Temasek Holdings.

Industry observers said it would not be a surprise if Sunrise MS was appointed by Khazanah, the major shareholder of UEM Land, to be the project manager for the development of the land as Khazanah is UEM Land's largest shareholder. However, the ownership of the land will still be in the hands of Khazanah and Temasek.

On Monday, June 20, UEM Land's share price ended two sen higher at RM2.77.