UMW to sell Shah Alam land for RM287.7 million

KUALA LUMPUR: UMW will sell a 15.70 hectare plot of leasehold industrial land in Section 15, Shah Alam, to Strategic Sonata Bhd for RM287.7 million.

UMW said it had entered into six sale and purchase agreements with Strategic Sonata, a whollyowned subsidiary of Singapore’s Mapletree Dextra Pte Ltd, and the disposal is expected to be completed by the second quarter of 2019.

UMW president and group chief executive officer Badrul Feisal Abdul Rahim said the disposal would enable the group to fully unlock and realise the value of its longheld assets in Shah Alam.

“It will also facilitate the planned relocation of ongoing business operations in Shah Alam to the proposed UMW High Value Manufacturing Park in Serendah,” he said in a statement yesterday.

Badrul Feisal said the migration to Serendah would provide a firm foundation for the group’s next phase of growth and further strengthened and enlarged the emerging ecosystem for highvalue, innovative manufacturing at the UMW High Value Manufacturing Park.

“Furthermore, the proposed movement of the group’s operating companies from Shah Alam to the UMW High Value Manufacturing Park will help boost and support green-field and brownfield manufacturing investments by top-tier investors, which will significantly elevate the value of the group’s land in Serendah,” he added.

UMW said part of the land would be leased from Strategic Sonata for its subsidiaries as this tenancy would ensure that the group’s ongoing business operations in Shah Alam could continue without undue disruption prior to the planned relocation to Serendah.

“The tenancy’s tenure of at least three years also provides sufficient time for the construction and completion of facilities in Serendah ahead of the planned relocation,” he added. — Bernama