UEM Sunrise, WCT to undertake RM3b property project

UEM Sunrise Bhd and WCT Holdings Bhd plan to undertake a RM3 billion mixed-property project in Serendah, Selangor, under a proposed equally-owned joint venture (JV).

In a statement to Bursa Malaysia today, UEM Sunrise said the JV intended to develop freehold land measuring 243ha (608.63 acres).

UEM Sunrise and WCT had today signed a conditional subscription and shareholders agreement, under which UEM Sunrise proposed to buy a 50% stake in the expanded share capital of Jubiliant Courtyard Sdn Bhd (JCSB) for RM214.88 million.

Land owner JCSB is currently a wholly-owned subsidiary of WCT. Upon completion of the stake buy, UEM Sunrise and WCT will own 50% each in JCSB.

At the signing ceremony here today, UEM Sunrise managing director and chief executive officer Anwar Syahrin Abdul Ajib said the JV was a move to strengthen the company's position by expanding outside southern Johor.

"The contribution of this project is expected to come in from 2018 onwards. Over a period of 10 years, it will contribute significantly to our profit," Anwar Syahrin said.

WCT managing director Taing Kim Hwa said the development would contribute positively to the future earnings to the group too.

Taing said the 10-phase project was scheduled for launch in the fourth quarter of 2017.

At 12.30pm, UEM Sunrise shares settled unchanged at RM1.13 for a market capitalisation of RM5.13 billion.

Shares in WCT was up seven sen or 5% at RM1.52, valuing the company at RM1.81 billion. - By Tan Siew Mung (The Edge Property)