KUALA LUMPUR: Bolton Bhd, which is selling its prime land near KL City Centre for RM112.29mil cash, has entered into a joint venture with United Malayan Land Bhd (UM Land) and South-East Asia’s biggest developer, CapitaLand Ltd, to jointly develop the land into a residential site.

In a statement to Bursa Malaysia, Bolton said it had yesterday subscribed to a 35% equity interest for RM35 in the joint-venture company, Alpine Return Sdn Bhd. The latter company would buy, develop and market the property.

CapitaLand, via unit Acegoal Ltd, would end up with 30% stake in Alpine Return, while UM Land will hold the balance 35%.

Bolton told Bursa after a closed-door signing ceremony yesterday that the joint-venture company would develop 11 parcels of freehold land measuring 4.3 acres in Jalan Mayang (Mayang land), off Jalan Yap Kwan Seng, Kuala Lumpur. CapitaLand will co-ordinate development of the project.

The statement said it would be developed into a landmark condominium with sales launch expected in early 2007.

Bolton did not say how much the development would cost, but said Alpine intended to fund it via bank borrowings and/or other forms of financing to be sourced by shareholders.

Bolton said the prime land was one of the largest plots zoned for residential development in the area.

''We are very excited to partner CapitaLand, one of Singapore and Asia’s largest and most successful property companies, and UM Land, one of Malaysia’s premier developers, to jointly develop the Mayang land,'' Bolton group chief executive Datuk Azman Yahya said in a joint statement issued by the three parties.

''This project represents another major step for Bolton as we expand our presence in developing high-end residential properties, building on the success of our Tijani development in Bukit Tunku,'' he said.

CapitaLand’s property and hospitality portfolio spans more than 88 cities in 30 countries.

CapitaLand Residential chief executive officer Lui Chong Chee said: ''Our joint venture, with strong partners like Bolton and UM Land, will help grow CapitaLand's presence in Malaysia.

''This joint venture is a further indication of our confidence in the long-term growth opportunities in Malaysia.''

Bolton bought the 11 parcels of land, which have a total net book value of RM42mil, between 1991 and 1996. The disposal would result in a gain of RM50mil for Bolton.

The company said it would use proceeds from the land sale to subscribe to Alpine Return shares, repay borrowings and meet working capital requirements.

Source : The Star 19/1/2006