Boustead aborts plan to buy land in Bukit Jalil for RM172.7m

KUALA LUMPUR (July 11): Boustead Holdings Bhd has aborted its plan to buy multiple pieces of leasehold commercial land totalling 10.74 acres in Bukit Jalil here for RM172.78 million.

The original plan was to develop the land into a mixed development with an estimated gross development value of RM333 million.

No reason was given for the termination of the sale and purchase agreement (SPA) signed with its largest shareholder Lembaga Tabung Angkatan Tentera (LTAT) back in December 2016.

In a filing with Bursa Malaysia today, Boustead said its wholly-owned subsidiary Boustead Construction Sdn Bhd (BCSB) and LTAT have mutually terminated the SPA, and LTAT has refunded the deposit paid by BCSB under the SPA.

“Following the termination, neither party will have any further claim against the other under the SPA for any incurred losses or expenses,” it added.

Boustead noted that the termination will not have any material effect on the group's net assets (NA), NA per share, gearing, earnings and earnings per share for the financial year ending Dec 31, 2019.

LTAT is the single largest shareholder in Boustead, with a 59.45% stake.

On Dec 19, 2016, Boustead had announced that the 10.74-acre land comprises a parcel of vacant commercial land measuring 5.75 acres, a parcel of vacant carpark land measuring 0.96 acres and 70 parcels of vacant terraced commercial shop plots measuring 4.03 acres. All land leases expire on April 25, 2095.

The mixed development would feature 70 units of shop offices and a retail centre with a dedicated car park area, where the surrounding commercial developments including the proposed Pavilion Bukit Jalil and Bukit Jalil City condominiums, would act as catalysts for retail activities in the vicinity.

Boustead shares closed unchanged at RM1.18 today, giving it a market capitalisation of RM2.39 billion. It saw some 1.71 million shares traded. Year-to-date, the counter has retreated about 16% from RM1.41.

https://www.theedgemarkets.com/article/bous...t-jalil-rm1727m

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MALTON Bhd is disposing of a 49 per cent stake in Pavilion Bukit Jalil Mall to alleviate its financial burden in completing the Bukit Jalil City integrated lifestyle development.

Pavilion Bukit Jalil, one of the largest regional shopping malls in the country, is part of the 20.23ha development that comprise Signature Shop Offices, The Park Sky Residence and The Park 2.

Malton, whose controlling shareholder is Tan Sri Desmond Lim, is raising money to complete the massive development in the southern part of Kuala Lumpur.

The proposed disposal will allow the group to immediately unlock the potential value and monetise its investment in the mall development.

Malton said the cash proceeds from the stake sale would facilitate the completion of Pavilion Bukit Jalil by March 2021 as estimated by the group.

Upon completion, Pavilion Bukit Jalil, being the crown jewel of Bukit Jalil City, will rejuvenate the area into a vibrant destination for business and entertainment.

Under the fundraising exercise, Lim and Qatar Investment Authority (QIA), Qatar’s sovereign wealth fund, will inject fresh capital of RM277.25 million and RM406.7 million respectively through subscription of redeemable preference shares (RPS) in Regal Path Sdn Bhd.

Malton told Bursa Malaysia it had entered into a share sale agreement with Regal Path to sell its 49 per cent stake for RM1.48 billion cash.

The group’s wholly-owned unit, Khuan Choo Realty Sdn Bhd, and Jelang Tegas, a company controlled by Lim, will subscribe for new ordinary shares in Amberstraits, which wholly owns Regal Path. Khuan Choo will own a 51 per cent stake and Jelang Tegas 49 per cent stake in Amberstraits.

Regal Path will then issue RPS to Khuan Choo, Lim and QIA’s wholly-owned unit QPBJ Sdn Bhd to raise RM830 million to fund the development costs.

The company will also issue RCP-B to Khuan Choo (RM215.8 million) and Jelang Tegas (RM207.5 million) in proportion to their respective equity shareholdings in Amberstraits.

Additionally, Regal Path will issue RPS-C to QPBJ for RM14,000 and RPS-D to Khuan Choo for about RM72.6 million, plus RPS-D to Jelang Tegas for RM69.75 million.

With an estimated net lettable area of 1.8 million square feet, Pavilion Bukit Jalil sits on a 11.33ha freehold land.

The regional mall will house five levels of retail space, two levels of basement parking with 4,717 car park bays and a centralised green area measuring about 1.5ha.

https://www.nst.com.my/property/2019/06/497...ukit-jalil-mall