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Saturday, February 9, 2013

Dijaya to develop RM1bil GDV project in Johor


PETALING JAYA: Dijaya Corp Bhd's unit Wisdom 88 Sdn Bhd throughRhythm Quest Sdn Bhd will buy a 260,227 sq ft of freehold land in Johor Bahru for RM85.8mil.
The land, which will be bought from Danga Bay Sdn Bhd, is adjacent to the existing landbank owned by Dijaya's subsidiary Tropicana Danga Bay Sdn Bhd and is immediately ready for property development.
Rhythm Quest Sdn Bhd is the special purpose vehicle used for the purpose of acquiring land and undertaking the development and construction of a hotel and any mixed development in Johor Baru.
The company filing with the stock exchange said that based on initial planning, the proposed project of a hotel and mixed development of commercial properties was expected to generate gross development value of about RM1.02bil.
“This land purchase is in line with Dijaya's overall objective of increasing its landbanks at strategic locations for its future development and property investment activities, especially in the southern region of Malaysia,” said Dijaya group executive vice chairman Tan Sri Danny Tan.
“The proposed project will be synergistic and shall be complementary to the overall development of Dijaya's project in the Danga Bay area by enhancing the vibrancy of the area and creating additional value to the existing development,” he added.
The proposed shareholders' agreement is expected to be completed in the second quarter of 2014, the company said.
“This proposal will not have any effect on the issued and paid-up share capital and substantial shareholders' shareholdings of Dijaya as the consideration will be satisfied entirely in cash,” it said.
Dijaya said its earnings were expected to benefit positively in the future with this deal.

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