Oxley, UOL make sizeable deals on prime land in KL

Published on Nov 18, 2013

TWO Singapore-listed developers were busy selling and buying land in the Malaysian capital last week.

UOL Group said last Friday that it agreed to sell a plot of prime land in Kuala Lumpur for RM568 million (S$221 million).

Its 60 per cent-owned subsidiary, Suasana Simfoni, has accepted a conditional offer from an unrelated third party to purchase all its interest in Lot 20000, Jalan Conlay.

The buyer has paid a sum equivalent to 2 per cent of the price.

UOL did not name the buyer.

Upon execution of the sales and purchase agreement within eight weeks, it shall pay a further 8 per cent, with the balance 90 per cent on the completion date, which is scheduled to take place about three months later.

The Jalan Conlay site, near the Bukit Bintang shopping area in Kuala Lumpur, has an area of about 172,149 sq ft.

When completed, the sale will result in a pre-tax gain of some RM247 million and the net proceeds are expected to be applied towards reducing bank borrowings and for working capital purposes.

As completion is expected in the second quarter of 2014, the gain will only be reflected in the results of the group for the next year.

Meanwhile, Oxley Holdings' subsidiary, Oxley Rising, has agreed to acquire a land parcel for RM446.7 million from the executors of the estate of Leong Mai Leng.

The freehold site has an area of approximately 135,357 sq ft.

It is currently occupied by six bungalows and located within the Kuala Lumpur City Centre (KLCC) area, which comprises prime plots of land and properties in the heart of Kuala Lumpur city.

Within close proximity are the Petronas Twin Towers, Suria KLCC, Grand Hyatt, Mandarin Oriental, and various luxury condominiums, such as Four Seasons Place, Dua Residency, Binjai Residency and The Troika.

Also nearby is a diverse array of amenities including shopping malls, upmarket restaurants, nightspots and international schools.

Oxley intends to redevelop the land, subject to obtaining all the necessary approvals from the relevant authorities.