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DRB-Hicom to dispose several assets, hospitality portfolio for RM1.9 bln

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Syndicated News
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KUALA LUMPUR, March 9  2018 : DRB-Hicom Bhd is disposing a large portion of its non-industrial property assets and its entire hospitality portfolio in a deal worth RM1.9 billion, as it moves to take advantage of its experience in the development industrial properties.

 In a filing to Bursa Malaysia yesterday, DRB-Hicom said, it will dispose of several subsidiaries owning some 890.30 hectares (ha), as well as its entire equities in Horsedale Development Bhd and Rebak Island Marina Bhd to Prisma Dimensi Sdn Bhd (PDSB).

“The deal is estimated to be worth RM1.9 billion and will be satisfied via a cache of landbank in Johor totalling 503.20 ha belonging to PDSB and Kelana Ventures Sdn Bhd (KVSB), and the balance through a cash payment of RM289 million,” it said.

A net gain on disposal of about RM849.4 million is expected from the disposals, it said.

“The disposals are in line with the change in the group’s strategic direction where the property division  will focus on the development and sale of industrial properties,” it said.

DRB-Hicom Group has an established track record as an industrial property developer in Malaysia, with over 30 years of experience in industrial property development. The group’s notable industrial development projects included Hicom Industrial Estate and Glenmarie Industrial Park in Shah Alam.

The on-going industrial parks development are in Alor Gajah, Melaka and Tanjung Malim, Perak.

As at Feb 28, 2018, the group has 242.81 ha to be developed as industrial parks, which are in Tanjung Malim, Perak, Shah Alam, Selangor, Bukit Kayu Hitam, Kedah and Alor Gajah, Melaka.

The disposals offer an attractive opportunity for the company as it is able to deal with one single party for the exchange of various types of properties located in various states in Malaysia – Johor Land.

The land is sizeable and strategically-located in Mukim Tebrau and the cash proceeds can be used by the group to meet its financing repayment obligations.

“With the Johor Land, the group’s prospective industrial landbank will increase to 745.83 ha from 242.81 ha, or by approximately 207 per cent,” it said. – Bernama

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