KUALA LUMPUR (Dec 15): UEM Sunrise Bhd is injecting freehold plots measuring a total of 94.9ha in Johor into its joint venture with CapitaLand Development of Singapore — Nusajaya Tech Park Sdn Bhd (NTPSB) — for the expansion of new industrial phases in the Nusajaya Tech Park, Iskandar Puteri.

In a statement, UEM Sunrise said its indirect wholly owned Nusajaya Rise Sdn Bhd has inked two sale and purchase agreements with NTPSB, the JV of UEM Sunrise's wholly owned UEM Land Bhd and CapitaLand's indirect unit Ascendas Land (Malaysia) Sdn Bhd, for the sale of the plots for RM289.2 million.

The 94.9ha comprise 27.4ha in Mukim Tanjung Kupang, Johor Bahru, made up of four agriculture plots and one plot with buildings erected, and 67.5ha in Mukim Pulai, Johor Bahru, made up of four lots of agriculture land.

"The transaction is an expansion of the existing Nusajaya Tech Park, a world-class integrated industrial park with eco-friendly infrastructure, designs and facilities with its well-maintained landscape and facilities, currently home to many multinational corporations, including small and medium-size enterprises. NTPSB is the developer of Nusajaya Tech Park.

"With the acquisition of these extended lands, NTPSB will own and develop an industrial park measuring a total size of 150.1ha, offering an estimated total gross development value of RM1.5 billion, to be developed over an anticipated development timeframe of eight to 10 years," said UEM Sunrise.

Its chief executive officer Sufian Abdullah noted that the group's collaboration with CapitaLand is not new, as the two have been partners since 2012 when they embarked on the Iskandar Puteri development.

"The Nusajaya Tech Park that is in operation today is a testimony to the successful collaboration. Its existence has contributed significant impact to Gerbang Nusajaya and Iskandar Puteri as a whole. We are positive that the expansion of new industrial phases in Nusajaya Tech Park will further stimulate economic activity, attract investors, and allow more companies to relocate to Iskandar Puteri.

"The park’s close proximity to the soon-to-be-completed Gerbang Nusajaya Interchange, which will connect to the Second Link Expressway, will allow commuters and industrial players to enter Singapore via the Ayer Rajah Expressway," he added.

Proceeds from the transaction and the potential creation of future development profits via NTPSB are among the initiatives and measures put in place by the company to navigate current market conditions, strengthen product portfolio and streamline core businesses, the group added.

UEM Sunrise’s share price closed 0.5 sen or 1.92% lower at 26 sen on Thursday, giving the group a market capitalisation at RM1.29 billion.