KUALA LUMPUR (Oct 20): UEM Sunrise Bhd is disposing of a 6% stake in Nusajaya Lifestyle Sdn Bhd (NLSB), the developer and operator of the Mall of Medini, Iskandar Malaysia, to Iskandar Investment Bhd’s (IIB) unit Iskandar Harta Holdings Sdn Bhd (IHH), for RM8.92 million.

The disposal will result in UEM Sunrise no longer being the main driver of the development of the commercial zone of Medini, as its shareholding in NLSB will decline to 49% from 55%, while that of IHH will increase to 51% from 45%.

In a filing with Bursa Malaysia, UEM Sunrise said the disposal will allow the group to strategically focus on its other assets in the Southern region especially in Puteri Harbour, as it will no longer be the development manager for the proposed mixed development of the land in Medini, Iskandar Puteri.

NLSB was initially a 55:45 JV company between UEM Sunrise and IHH established in 2011 to develop and operate a commercial piece of land in Medini, Iskandar Puteri. Khazanah Nasional Bhd has a 60% stake in IIB, the owner of IHH, followed by the Employees Provident Fund (EPF) and Kumpulan Prasarana Rakyat Johor.

The development was divided into two phases whereby Phase 1 of the development, comprising a retail development known as Mall of Medini, was completed in 2012, while the remaining available land will feature entertainment facilities, shopping malls and serviced apartments.

At Friday's market close, shares of UEM Sunrise were down 2 sen or 2.61% at 74.5 sen apiece with a market capitalisation of RM3.77 billion.