SP Setia inks RM1.24bil deal to jointly develop with KPS high-end properties in Templer Park
Posted on February 7, 2013 - Featured, Property News.
PETALING JAYA: SP Setia Bhd has signed on to develop RM1.24bil worth of high-end residential and commercial property on the site of the Perangsang Templer Golf Club in Templer Park in a joint-venture with Kumpulan Perangsang Selangor Bhd (KPS).
The developer said in a statement to the stock exchange that the partnership, executed via its subsidiary Rockbay Streams Sdn Bhd, was the outcome of a request for proposal from Cash Band (M) Bhd, a 99.98%-unit of KPS and the owner of three parcels of leasehold land measuring 194.65 acres on which the properties will be built.
Under the agreement, SP Setia’s role is to develop the land as well as market and sell the commercial and residential units, with Cash Band as the landowner.
It will pay Cash Band 16% of the gross sales value of the development or a minimum of RM200mil. In the event the project is subject to a provision for low-cost, medium low-cost or affordable housing, this amount will be reduced to 13% and RM140mil.
The yet-unnamed project has a development period of six years from vacant possession of the land. Completion is slated for the first quarter of 2021, according to a separate filing by KPS. SP Setia also said it was too early to reveal details about the total development cost or expected profits.
However, it said the management was confident that the proposal will be “well-received due to its prime locality” and contribute positively to its earnings and cash flow in the future.
The development, located some 20km from the city centre and ringed by lush greenery from nearby tropical rainforests, will adopt an eco-theme similar to Setia Eco Park in Shah Alam, SP Setia said.
The land has a net book value of RM84.55mil and RM44.72mil at the Cash Band and KPS level, respectively, and a market value of RM100mil including buildings, fixtures and furnishings.
State-owned KPS had learnt after a study to evaluate the redevelopment potential of the 18-hole golf course that it was “strategically-located” but “not-fully optimised in its current form and utilisation”.
“Through the proposed conversion of the land use to a mixed development, the true value of the land can be unlocked, realised and optimised for the benefit of shareholders.
“The location of the land amidst lush green surroundings and its close proximity to KL and Selangor’s main cities such as Shah Alam and Petaling Jaya make it ideal for an eco-themed, premium development.
“Since neither Kumpulan Perangsang Selangor not Cash Band are directly involved in property development, the interest of shareholders can be better served through a partnership with a developer with vast experience in the industry and well-known for its award-winning brand of premium sustainable developments,” the company said.
KPS will use the proceeds to pare down its debt and fund new ventures and investments.
The golf club, which has some 1,600 members, will be closed down.
http://www.starproperty.my/index.php...n-templer-park
Posted on February 7, 2013 - Featured, Property News.
PETALING JAYA: SP Setia Bhd has signed on to develop RM1.24bil worth of high-end residential and commercial property on the site of the Perangsang Templer Golf Club in Templer Park in a joint-venture with Kumpulan Perangsang Selangor Bhd (KPS).
The developer said in a statement to the stock exchange that the partnership, executed via its subsidiary Rockbay Streams Sdn Bhd, was the outcome of a request for proposal from Cash Band (M) Bhd, a 99.98%-unit of KPS and the owner of three parcels of leasehold land measuring 194.65 acres on which the properties will be built.
Under the agreement, SP Setia’s role is to develop the land as well as market and sell the commercial and residential units, with Cash Band as the landowner.
It will pay Cash Band 16% of the gross sales value of the development or a minimum of RM200mil. In the event the project is subject to a provision for low-cost, medium low-cost or affordable housing, this amount will be reduced to 13% and RM140mil.
The yet-unnamed project has a development period of six years from vacant possession of the land. Completion is slated for the first quarter of 2021, according to a separate filing by KPS. SP Setia also said it was too early to reveal details about the total development cost or expected profits.
However, it said the management was confident that the proposal will be “well-received due to its prime locality” and contribute positively to its earnings and cash flow in the future.
The development, located some 20km from the city centre and ringed by lush greenery from nearby tropical rainforests, will adopt an eco-theme similar to Setia Eco Park in Shah Alam, SP Setia said.
The land has a net book value of RM84.55mil and RM44.72mil at the Cash Band and KPS level, respectively, and a market value of RM100mil including buildings, fixtures and furnishings.
State-owned KPS had learnt after a study to evaluate the redevelopment potential of the 18-hole golf course that it was “strategically-located” but “not-fully optimised in its current form and utilisation”.
“Through the proposed conversion of the land use to a mixed development, the true value of the land can be unlocked, realised and optimised for the benefit of shareholders.
“The location of the land amidst lush green surroundings and its close proximity to KL and Selangor’s main cities such as Shah Alam and Petaling Jaya make it ideal for an eco-themed, premium development.
“Since neither Kumpulan Perangsang Selangor not Cash Band are directly involved in property development, the interest of shareholders can be better served through a partnership with a developer with vast experience in the industry and well-known for its award-winning brand of premium sustainable developments,” the company said.
KPS will use the proceeds to pare down its debt and fund new ventures and investments.
The golf club, which has some 1,600 members, will be closed down.
http://www.starproperty.my/index.php...n-templer-park