Image from Genting Malaysia 2014 Annual Report.
October 19, 2015:
In two major property transactions, Malaysian companies Milux and Genting Malaysia engaged in a development joint venture and land sale, respectively, with related parties late last week.
Milux in JV with major shareholder to develop housing project
Milux Corp Bhd
is partnering RGF Cabaran Sdn Bhd to jointly develop 12 pieces of land measuring 25,832.31 sq m in Bentong, Pahang into a residential property consisting of condominiums.
In a Bursa Malaysia filing, the household appliance manufacturer said its wholly-owned subsidiary, Milux Properties Sdn Bhd has entered into a joint-venture (JV) cum shareholders’ agreement with RGF Cabaran, to form a JV company for the proposed project dubbed "Pentagon Genting Highlands".
Milux Properties will have a 60 per cent stake in the JV company, called Phoenix Pentagon Sdn Bhd, and RGF Cabaran the rest.
RGF Land Sdn Bhd
, being the holding company of RGF Cabaran, is the beneficial and registered owner of the 12 pieces of land. RGF Land is also a major shareholder of Milux, with a 13.78 per cent stake.
"In view of the increasingly competitive market in the household appliances industry in which the group operates, the group has identified the JV as a new business opportunity which is expected to provide an additional source of income for the group," Milux said.
The JV and agreement will also allow the group to minimise the financial outlay for this initial diversification exercise and provide the opportunity for the group to participate in future project management contracts secured by RGF Cabaran.
Milux also said the group has the capacity, capabilities and resources to venture into this JV by capitalising on the competency and experience of its group managing director Koh Pee Seng, who has been involved in property development since the 1990.
Genting Malaysia sells Segambut land for $15.6m
The two companies announced on the local stock exchange that GenM’s unit Genting Highlands Tours and Promotion Sdn Bhd signed a conditional sale and purchase agreement with GenP’s unit Esprit Icon Sdn Bhd for the disposal of the land measuring 380,902 sq ft.
The land sites a single-storey office building, store, workshop and parking yard/garage, all with an estimated age of between 35 and 40 years old.
On the transfer of the properties, Genting Highlands Tours will take tenancy of about 100,500 sq ft of the properties for two years. Rental will be MYR750,000 for the entire term.
Currently, about half of the properties is occupied by the GenM group to house its transport operations and tenanted to a third-party tenant. GenM said the proposed disposal provided an opportunity for the group to unlock the immediate full value of the properties.