Sime Darby, JRAM fail to reach de­fin­i­tive deal but talks con­tinue

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: Sime Darby Bhd and Ja­pan Res­i­den­tial As­sets Man­ager Ltd (JRAM) have failed to en­ter into an agree­ment for the dis­posal of its in­dus­trial prop­er­ties in Aus­tralia to Saizen REIT, but dis­cus­sions are on­go­ing, the con­glom­er­ate said yes­ter­day.

A de­fin­i­tive agree­ment be­tween Sime Darby Prop­erty Sin­ga­pore Ltd (SDPSL) and Hast­ings Deer­ing (Aus­tralia) Ltd (HDAL) and JRAM was to have been en­tered as of the long-stop date of Sept 30, 2016.

“SDPSL and HDAL con­tinue to be in dis­cus­sion with JRAM. If the par­ties are able to re­solve out­stand­ing mat­ters, SDPSL and HDAL may en­ter into the de­fin­i­tive agree­ments,” Sime Darby said in a stock ex­change fil­ing yes­ter­day. No de­tails on the out­stand­ing mat­ters were given.

Sime Darby’s in­di­rect wholly owned sub­sidiaries HDAL and SDPSL had on Aug 15, 2016, en­tered into a frame­work agree­ment with JRAM, man­ager of Saizen REIT, for the pro­posed dis­posal of in­dus­trial prop­er­ties in Aus­tralia to Saizen REIT.

It was in­tended that HDAL would sell cer­tain of its in­dus­trial prop­er­ties in Aus­tralia to Saizen REIT, which would be master leased to HDAL, and SDPSL or its nom­i­nee or nom­i­nees would be is­sued new units in Saizen REIT as part of the re­verse takeover of Saizen REIT by SDPSL.

SDPSL also en­tered into a con­di­tional share pur­chase agree­ment with JRAM for the pro­posed ac­qui­si­tion of 80% of the is­sued shares of JRAM. The com­ple­tion of the prop­er­ties dis­posal and the JRAM ac­qui­si­tion were in­ter-con­di­tional.

Sime Darby said in Au­gust it wanted to de­velop a REIT plat­form to gen­er­ate a re­silient and re­cur­ring in­come stream.

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