IJM Corp to buy Penang land for RM402.8 million

IJM Corp Bhd has bought the remaining shares in its joint venture (JV), Aura Hebat Sdn Bhd (AHSB), from partner Perennial Penang Pte Ltd, for an undisclosed amount. AHSB is in the midst of acquiring a 32.76-acre parcel of land located within IJM Corp’s existing The Light Waterfront development in Penang.

In a filing with Bursa Malaysia today, IJM Corp said The Light Waterfront Sdn Bhd – a wholly-owned subsidiary of IJM Properties Sdn Bhd which in turn is a wholly-owned unit of IJM Corp through IJM Land Bhd – had today acquired one share representing a 50% stake in AHSB.

"AHSB will acquire the land from Jelutong Development Sdn Bhd – an 80%-owned subsidiary of IJM Properties – for RM402.8 million cash, subject to among others, the receipt of documents of title to the property from the relevant Penang authorities," said the group.

The land will be developed into a large scale integrated waterfront mixed-use development comprising a shopping mall and thematic shops, residential towers, an office tower, two hotels and a convention centre, with a total gross floor area of about 4.1 million sq ft.

The Light Waterfront development is an integrated project, spreading across 152 acres of land located on the eastern coast of Penang island.

IJM Corp shares declined 10 sen or 1.34% to RM7.38 today, giving it a market capitalisation of RM13.33 billion. – The Edge Markets, April 21, 2015.