Saturday, 6 May 2017

(The Star) RM4.3bil property assets to be injected into IWH

IWC has also modified agreement with Chinese partner Greenland

KUALA LUMPUR: Iskandar Waterfront City Bhd (IWC) has announced that there will be an injection of 3,598 acres of land worth RM4.3bil in relation to its proposed merger with Iskandar Waterfront Holdings Sdn Bhd (IWH).

In a statement to Bursa Malaysia yesterday, IWC said IWH proposed to enter into several sale and purchase agreements to buy properties in Johor controlled directly or indirectly by IWH executive vice-chairman and director Tan Sri Lim Kang Hoo, Kumpulan Prasarana Rakyat Johor Sdn Bhd and other Johor state entities.

The restructuring exercise involves a proposed a 1-into-2 IWC share split and IWH buying the remaining 61.7% stake in IWC at RM1.50 per IWC share, to be satisfied by issuing IWH shares on the basis of one new IWH share for one existing IWC share.

IWC said the proposed merger scheme was expected to be completed by the first quarter of next year.

In a separate filing, IWC said it had modified its agreement with China-based Greenland Holdings Group Ltd, its partner in a waterfront city project in Johor with an estimated gross development value of RM18.4bil.

IWC’s unit Tebrau Bay Sdn Bhd yesterday inked a supplemental agreement with Greenland Tebrau Sdn Bhd (GTSB), the special-purpose vehicle to undertake the mixed development, on the disposal of its 128-acre partially-submerged land in Plentong, Johor Baru, to GTSB for RM2.4bil.

GTSB is 20% owned by IWC (through unit Southern Crest Development Sdn Bhd) and 80% by the Greenland group (via Greenland Malaysia Real Estate Operator Sdn Bhd).

GTSB has proposed a change in the sequence of tranche completion to facilitate changes to the development plan for the land.

Another amendment is that the disposal consideration for each land tranche will be subject to the approvals required under Section 433B of the National Land Code Act and reclamation of the land being completed before the date stipulated for the balance payment by GTSB for the respective lots.

Previously, the payment was subject to the condition precedents for each land tranche having been met and the release of the subdivided titles for each land tranche by Tebrau Bay to Greenland.

The proposed land disposal is expected to be completed by the second quarter of 2020. Originally, the disposal was to be fully completed by the first quarter of next year.