MY Realty Dealbook: Nexgram on TRX; UEM’s Melbourne office tower; EcoFirst’s land acquisition; Takaso’s JV development [DealStreetAsia 6 Aug 15]

Nexgram still keen on TRX land

Nexgram Holdings Bhd has decided to acquire a parcel of land in the 1Malaysia Development Bhd‘s Tun Razak Exchange (TRX) here, its chief executive officer Larry Tey told local reporters.

Although the company is still in a negotiation phase and remains cautious in terms of costs and returns for the property, it was not backing away from the deal.

“If the price tag matches our appetite, we will proceed,” he told local media after the company’s EGM yesterday.

Quoted in StarBiz, Tey said TRX’s strategic location made it attractive for any developer and the price was attractive.

As a property developer, he said Nexgram would ensure that the margin was good, otherwise it would discontinue the negotiation.

TRX is planned as an iconic 28.32ha development in the heart of Kuala Lumpur city for international finance and business.

UEM Sunrise acquires Melbourne office block

UEM Sunrise Bhd has acquired a 21-storey office tower in Melbourne, Australia, for A$58 million ($42.5 million), to be converted into a luxurious residential development.

The office tower located on 412 St Kilda Road is the company’s third property acquisition in the city, following its purchase of two central business district (CBD) sites on LaTrobe Street and Mackenzie Street in October 2013.

The office tower, which measures some 16,000 sq m, is sited at a strategic corner site of St Kilda Road, one of the main routes into the Melbourne CBD. It is currently occupied by the Victorian Police and will be vacated after mid-2016, UEM noted in a statement.

“The intention of this acquisition is to develop ‘an unprecedented ultra-luxurious residential development’, potentially with a mix of ground-floor retail and serviced apartment components. The company will continue to evaluate the market condition in order for the development to meet future market demands,” the property developer said.

The acquisition is part of UEM’s strategy to ensure steady flow of overseas projects.

EcoFirst’s land acquisition further delayed

EcoFirst Consolidated Bhd’s acquisition of a 62- acre piece of land has been further delayed due to technical issues on land alignment.

In a statement yesterday, EcoFirst said the group and the landowner, Zurich Insurance Malaysia Bhd, have mutually agreed to extend the purchase completion of the land for a further three months to October 31, 2015 due to the said reasons.

The land, worth MYR145 million ($37.2 million) in Ulu Klang, Gombak in Selangor, fronts the Middle Ring Road 2 (MRR2).

In a filing with Bursa Malaysia, EcoFirst said both parties had via exchanges of letters dated July 31 and Aug 3, 2015, agreed in principle to the extension for the group to pay the balance purchase consideration of MYR130.5 million with late payment interest at a rate of 6 per cent per year on or before Oct 31, 2015.

The group is currently awaiting all pending relevant information from authorities in order for it to finalise the full payment of the acquisition.

Takaso’s JV development to cost $24.2m

Takaso Resources Bhd will be committing MYR94.4 million ($24.2 million) in its joint venture (JV) with Makok International Sdn Bhd to develop a 1,492.23 sq m piece of land in Kuala Lumpur.

The gross development cost is, however, subject to changes upon Masbe Coffee Sdn Bhd obtaining all necessary approvals for development of the land such as layout plan approval and building plan and specifications approval by the appropriate authority.

Last week, Takaso had announced that it had accepted a conditional offer letter from Makok to acquire a 51 per cent stake in Masbe for MYR5 million.

Takaso said it intends to finance the development cost through a fundraising exercise, internal funds and bank borrowings, which has not been finalised at this juncture.