SymLife had on Thursday entered into a Development Agreement (DA) with Majlis Kebajikan Dan Sukan Anggota-Anggota Kerajaan Malaysia (MAKSAK), the owner of 13,595 square metres leasehold land, for a total consideration of RM100.081 million.
The land is held under PN 2297, Lot 51867, Mukim and District of Kuala Lumpur (Project Land) located on Jalan Cheras. There is currently a 3-storey commercial building erected on the Project Land known as Kompleks MAKSAK.
Under the plan, SymLife will pay RM15.521 million for MAKSAK Land, which is a portion of the Project Land, and it will build MAKSAK’s new headquarters on the land at a cost not more than RM7.36 million.
Upon completion of the development of the Project Land, SymLife will transfer part of the development on the Project Land of not less than 35,000 square feet of mixed development with a gross sale value not exceeding RM45 million to MAKSAK.
It will also pay upfront compensation of RM9 million and rental compensation of RM16 million as compensation for loss of rental earnings and a further RM7.2 million as rental returns.
The total consideration amount is derived at on a "willing buyer-willing seller" basis pursuant to a tender exercise by MAKSAK. No valuation was carried out on the Project Land.
Based on internal market survey of prices for properties within the vicinity, the consideration amount is deemed reasonable.
The DA is conditional upon the following conditions precedent being obtained and/or fulfilled within twelve months from the date of the DA, with an automatic extension of a further six months or such extended period as mutually agreed:-
- SymLife receives a copy of the duly executed and stamped Sale and Purchase Agreement (SPA) of the MAKSAK Land;
- SymLife obtains the development order for the construction of MAKSAK's new headquarters on the MAKSAK Land;
- SymLife receives the original title of the Project Land under a single title with 99 years leasehold tenure, subject to commercial category of land use and free from any encumbrances;
- SymLife obtains the development order for the proposed development on the Project Land;
- Completion of the SPA of the MAKSAK Land;
- MAKSAK grants SymLife the Power of Attorney to enable and empower SymLife to deal with the relevant matters relating to the lands;
- Both MAKSAK and SymLife obtain the relevant approvals required to enter into the DA; and
- Both MAKSAK and SymLife agree to the design and specifications of MAKSAK's new headquarters within three months from the completion date of the SPA of the MAKSAK Land.
The proposed development of the Project Land which comprises service apartments and shop/strata offices are to be completed within seven years. The project will be funded through a mix of internally generated funds and bank borrowings.
It is expected to commence development upon completion of MAKSAK's new headquarters and after obtaining all the approvals from the relevant authorities.
“The proposed development is in line with SymLife’s objective to focus on its core business of property development, thereby increasing the group’s landbank so as to enhance the group’s future earnings,” it said.
It said the Project Land has an excellent development potential with a mature and popular commercial surrounding areas with a ready catchment of middle and upper income group. It also has good ready infrastructure served by a good netowrk of public transport and lifestyle facilities.
The proposed development is not subject to the approval of the shareholders of SymLife and it does not have any material effect to SymLife's consolidated net assets for the financial year ending 31 March 2016.
Kompleks MAKSAK is strategically located on Jalan Cheras, near Taman Pertama.
SymLife, which celebrated its 50th anniversary last year, is currently developing TWY in Mont'Kiara, Elevia Residences in Taman Tasik Prima in Puchong, Selangor, a built-and-sell landed project Desiran Bayu in Wangsa Maju, Tijani Signal Hill in Sabah and Tijani Raja Dewa in Kota Bharu, Kelantan — the first high-end development there.
It also has a multi-billion ringgit development known as Star Residences in Jalan Yap Kwan Seng in the heart of downtown Kuala Lumpur. The three-tower development and a commercial block is jointly developed with United Malayan Land Berhad (UM Land) via a joint venture company called Alpine Return Sdn Bhd.
The group's future projects include 51G Kuala Lumpur in Persiaran Gurney, a SOHO development in Bandar Sunway, a RM8 billion 420-acre township in Sungai Long, Kajang, a luxury condominium project next to TWY Mont'Kiara and a 25-acre affordable home township in Section U10, Shah Alam, Selangor.
Meanwhile, the group has re-planned its proposed Wharf Shopping Mall in The Wharf development in the township of Taman Tasik Prima in Puchong to incorporate the concept of a neighbourhood mall with a hypermarket overlooking a lakeside.
To further expand the SymLife brand, the group is currently building its own corporate head office known as Symphony Square, a 20-storey Green Building Index-certified and MSC-status office building in Jalan Semangat, Petaling Jaya, Selangor.