Three local firms in Iskandar JV

PHOTO: Three local firms in Iskandar JV

The units of three local firms - Tat Hong Holdings, Boustead Singapore and CSC Holdings - have set up a joint venture with AME Group to develop land in Iskandar Malaysia.

Boustead will own 35 per cent of the joint-venture firm, named Tat Hong Industrial Properties Sdn Bhd (THIP), through its unit BP Lands, for a paid-up capital of RM3.5 million (S$1.4 million).

The Johor-based AME Group, which has a division that specialises in real estate development, will also own 35 per cent. It will do so through its unit AME Land Sdn Bhd for the same amount in paid-up capital.

Tat Hong will hold a 25 per cent stake worth RM2.5 million in paid-up capital through a wholly-owned unit, while CSC Holdings will have a 5 per cent stake for RM500,000 in paid-up capital through its subsidiary, L&M Ground Engineering Sdn Bhd.

Altogether, the joint-venture firm will have a paid-up capital of RM10 million. It will develop six parcels of vacant industrial land in Nusajaya, Iskandar Malaysia's Flagship Zone B. The land covers 1.29 million sq ft in total.

THIP will move in to complete the purchase of five of the land parcels that Tat Hong Heavy Equipment (Pte) Ltd started with the vendor of the land, UEM Land Bhd.

THIP will do the same for the sixth parcel, the purchase of which it will take over from L&M Ground Engineering; UEM Land was also the vendor for this.

The joint-venture partners will advance a shareholders' loan of RM88 million to THIP according to the size of their respective shareholdings, to fund the land acquisition and other costs related to operating THIP.

The group said in a statement on Friday: "Boustead is of the view that Iskandar Malaysia represents the best and most promising avenue of international expansion for Boustead projects, in comparison to other markets like China or Vietnam."

The subscription to shares in THIP and the shareholders' loan are not expected to have a material impact on CSC's, Boustead's or Tat Hong's earnings per share and net tangible asset value per share for the current financial year.

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