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| UDA ties up with Tesco to develop new outlet in JB [ 01/10/2002 ] |
PROPERTY developer UDA Holdings Bhd has entered into a joint venture with Tesco Holdings BV to develop the British hypermart operator’s new outlet in Johor Baru.
The outlet will be located in Bandar Baru UDA and it will be connected to one of the city’s largest shopping complex, Plaza Angsana, UDA Holdings announced to the Kuala Lumpur Stock Exchange yesterday.
UDA Holdings said it will first sell a 5.4ha land to its fully-owned subsidiary Koridor Saga Sdn Bhd for RM70 million, before transferring 50 per cent of its interest in the unit to Tesco Holdings.
The joint-venture will then build a retail complex that will be fully leased by Tesco Stores Malaysia Sdn Bhd for 20 years. Tesco Stores is co-owned by Tesco Holdings and Sime Darby Bhd.
UDA Holdings said it will gain RM21.3 million from the land sale following Tesco Holdings’ subscription of Koridor Saga’s equity, which is expected to be completed in the quarter ending December 31 2003.
It will also record an additional net profit of RM1.2 million per year from the lease agreement with Tesco Stores. The profit is expected to rise to RM2.4 million from the sixth year due to interest savings after the construction loan has been paid off.
Koridor Saga, meanwhile, will receive rental income of RM7.8 million per year.
The construction work for the retail complex is expected to start early next year and will finish in nine months.
“The new retail space would total 250,000sq ft which together with the existing 450,000sq ft would enhance Tampoi Town Centre as the premier one-stop shopping (destination) in suburban Johor,” said UDA in a separate statement to the press.
Source : NST 1/10/2002 |
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