Tuesday, July 12, 2011

Nadayu formalises acquisition of land from UDA for RM215m

KUALA LUMPUR: Nadayu PROPERTIES [] Bhd (formerly MUTIARA GOODYEAR DEVELOPMENT [] Bhd) has formalised its acquisition of 3.56 acres of land along Jalan Sultan Ismail from UDA Holdings Bhd for RM215.5 million.

It said on Tuesday, July 12 it had entered into a sales and purchase agreement with UDA to formalise the terms and conditions of the proposed acquisition.

Nadayu said the Land is along Jalan Sultan Ismail and behind the buildings on Jalan Doraisamy.

It said based on UDA's financial year ended Dec 31, 2010, the audited net book value of the land was RM31.71 million. There are plans to build a 30-storey service apartment building, an eight storey podium car park and a three-storey retail shopping complex.

Nadayu'' said the proposed acquisition was part of its expansion strategy to grow the land bank for development purposes in prime locations across the Klang Valley.

'The proposed acquisition provides an opportunity for the group to acquire a freehold vacant land ready for

development that is located at a prime commercial area of Jalan Sultan Ismail, which is within the

centre of Kuala Lumpur city,' it said.

Nadayu also said the proposed acquisition would enable it to boost its property development business portfolio.

It added the group would have a more diverse mix of property project types and geographical locations which is expected to provide a more balanced and risk mitigated performance to the group.

'The validity period of the development approvals had expired on Feb 7, 2010 and the company intends to submit a revised development proposal pursuant to the completion of the proposed acquisition,' it said.

Nadayu said the purchase price for the land was a discount of RM10.50 million or about 95% to the market value of RM226 million'' based on the valuation by CH Williams Talhar & Wong Sdn Bhd on June 15.

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