Iskandar Waterfront City Bhd (IWC) has announced that there will be an injection of 3,598 acres of land worth RM4.3 billion in relation to its proposed merger with Iskandar Waterfront Holdings Sdn Bhd (IWH). IWC proposed to enter into several Sale and Purchase Agreements (SPA) to buy properties in Johor controlled directly or indirectly by IWH’s executive vice-chairman, Kumpulan Prasarana Rakyat Johor Sdn Bhd and other Johor state entities. The restructuring exercise involves a proposed “1 into 2” IWC share split and IWH buying the remaining 61.7% stake in IWC at RM1.50 per IWC share. The proposed merger scheme is expected to be completed by 1Q18.

In addition, IWC has modified its agreement with China based Greenland Holdings Group Ltd, its partner in a waterfront city project in Johor with an estimated gross development value of RM18.4 billion. IWC’s unit Tebrau Bay Sdn Bhd signed a supplemental agreement with Greenland Tebrau Sdn Bhd (GTSB), the special purpose vehicle to undertake the mixed development, on the disposal of its 128 acre partially submerged land in Plentong, Johor Baru, to GTSB for RM2.4 billion. GTSB has proposed a change in the sequence of tranche completion to facilitate changes to the development plan for the land. Another amendment is that the disposal consideration for each land tranche will be subject to the approvals required under Section 433B of the National Land Code Act and reclamation of the land being completed before the date stipulated for the balance payment by GTSB for the respective lots. Previously, the payment was subject to the condition precedents for each land tranche having been met and the release of the subdivided titles for each land tranche by Tebrau Bay to Greenland. The proposed land disposal is expected to be completed by 2Q20. Originally, the disposal was to be fully completed by 1Q18.

(The Star, 6/5/2017)


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Jones Lang Wootton