In a strategic move to further strengthen the company’s position, niche township developer Boustead Properties Berhad has divested 6.59 acres of prime freehold land located on Jalan Cochrane, Kuala Lumpur for RM233.4 million. The signing of the Sale and Purchase Agreement took place today between its subsidiary Mutiara Rini Sdn Bhd and Sunway Rahman Putra Sdn Bhd, a wholly-owned subsidiary of Sunway Berhad.
Boustead Properties has leveraged on a timely opportunity to not only unlock value of the said landbank but to also realise stronger returns on the company’s other investment properties in the Jalan Cochrane area, comprising MyTown Shopping Centre and One Cochrane Residences both of which are advantageously located within close proximity of the Cochrane MRT Station which is one station away from the Tun Razak Exchange.
Boustead Properties’ Chief Operating Officer Eason Phan said, “The strategic location, easy accessibility, and ready infrastructure in the area allowed the company to monetise the land at a premium based on our initial cost of investment. We are confident that the upcoming development by the acquirer will result in substantially increased population in the area, while spurring higher footfall into MyTown.”
He added, “The proceeds from the asset monetisation will enable Boustead Properties to focus on enhancing the value of our ongoing property development activities. The move is also in line with Boustead Holdings Berhad’s Reinventing Boustead strategy to unlock value by reimagining our role as a sustainability-driven property developer.”
According to Eason, Sunway’s bid was chosen from a selection of bidders made up of reputable and financially sound developers who could contribute towards further accelerating the growth in the area.
(20 April 2021)
