UEM Sunrise proposes to sell Canada lands for RM373 million
KUCHING: UEM Sunrise Bhd ( UEM Sunrise) has proposed to sell three parcels of land in Canada for approximately RM372.57 million.
The company told Bursa Malaysia yesterday that its whol ly- owned subsidiary, UEMS Alderbridge has entered into an agreement with a purchaser for the disposal of three parcels of land for a total consideration of C$ 113 million or equivalent to RM372.57 million.
UEM Sunrise explained that the proposed land disposal was in line with the group’s strategy to concentrate on the domestic property market in Malaysia and to shift its international business focus to Australia where UEMS Group has two on- going projects and a third project currently in the pipeline.
Elaborating further, UEM Sunrise said the move to sell the land is expected to allow UEMS Group to better focus itself in growing its operations in those countries.
The company revealed that the proceeds from the proposed land disposal will be utilised to meet the group’s working capital requirements, and is expected to be utilised within a period of 12 months.
Meanwhile, UEM Sunrise noted the subject property was acquired by the company in April 2014 at a cost of CAD$ 70.2 million or RM208.46 million.
The subject property is located in the Lansdowne Village Town Centre in Richmond’s City Centre.
It is a prime location within Lansdowne Village, across the street from Lansdowne Centre and a short walking distance from the Lansdowne Canada Line Sky Train Station.
The subject property is current ly vacant and an application has been made to the City of Richmond to rezone the lands from auto oriented commercial to a zone for mixeduse commercial and residential development.
Before the change of strategy by the company, UEM Sunrise recalled that the original plan was for the subject property to be developed into a mixed development comprising of residential units, offices, retail shops and amenities with an estimated gross development va lue of approximat e ly CAD$ 516.9 million or RM1.7 billion.
On another note, UEM Sunrise noted the total net book value of the subject property based on the latest audited f inancial statements of the company as at December 31, 2015 was CAD$ 71.88 million or equivalent to RM223.08 million at the exchange rate of C$ 1 to RM3.1035.
In the meant ime, UEM Sunrise disclosed that UEMS Alderbridge was incorporated on December 30, 2013 under the Business Corporations Act in British Columbia, Canada as UEM Sunrise (Canada) Title Company Ltd.
The company observed that on March 6, 2014, UEMS Alderbridge changed its name to the present name.
UEM Sunrise said UEMS Alderbridge’s present share capital is CAD$ 1.00 divided into one common share and its principal activity is real estate acquisition and development.
UEMS Alderbridge is a wholly owned subsidiary of UEM Sunrise (Canada) Development Ltd, which is a wholly owned subsidiary of UEM Sunrise (Canada) Sdn Bhd, which in turn is wholly owned by UEM Sunrise.