Damansara Realty Bhd (DBhd) received the Economic Planning Unit’s (EPU) approval for a land acquisition. It is part of its proposed RM141.5 million (mn) settlement agreement with Johor Corporation (JCorp), allowing it to reduce its net current liabilities and return its balance sheet to health.
The integrated facilities management (IFM) project management consultancy (PMC) and property group announced that its associate company (DAC Properties) received the EPU’s approval on 22 November 2017. Since then, DAC Properties have completed the acquisition of 53.14 acres of land of RM130.3 mn from JCorp.
“With the completion of the acquisition, DBhd has met almost all its obligations under the settlement agreement with JCorp, and will reduce the group’s net current liabilities by RM132 mn,” comments Brian Iskandar Zulkarim, Group CEO of DBhd. He also adds that the completion will lead to a stronger balance sheet for DBhd.
Located in Tebrau, Johor Bahru, the land is part of DBhd‘s 63-acre Central Park being developed in partnership with the Hong Kong-listed Country Garden, within the strategically located Taman Damansara Aliff along the Pasir Gudang Highway.
The settlement comprises two acquisitions of land by DBhd from JCorp for RM141.5 mn cash, and a land swap. As part of its joint venture with Country Garden Malaysia, DBhd has already completed the payment of RM130.3 mn of the total RM141.5 mn settlement sum, leaving balance of RM11.2 mn left to be paid.