UEM Sunrise receives full RM415m entitlement from EXSIM for KLCC development rights
UEM Sunrise Bhd has received the full RM415 million guaranteed entitlement under a development rights agreement with an EXSIM group company for a 1.59-acre freehold commercial site near Kuala Lumpur City Centre. The balance payment was made on Oct 30, completing the three-instalment payment schedule
PETALING JAYA (Nov 2): UEM Sunrise Bhd has received its guaranteed entitlement of RM415 million in full under a development rights agreement with an EXSIM group company involving a 1.59-acre freehold commercial site near Kuala Lumpur City Centre. In a Bursa Malaysia filing on Friday (Oct 30), the developer said it received the balance payment that day in accordance with the agreement’s terms.
The agreement was signed on July 3 between its indirect wholly owned subsidiary, Aurora Tower At KLCC Sdn Bhd, and EXSIM KLCC Sdn Bhd, which has since changed its name to EXSIM KL City Centre Sdn Bhd. The site is at the junction of Jalan Ampang and Jalan P Ramlee, adjacent to Kuala Lumpur City Centre. Held under Geran 4733, Lot 149, Seksyen 58, Bandar Kuala Lumpur, it measures 6,426 sq m (about 69,169 sq ft).
Under the agreement, Aurora Tower agreed to grant the EXSIM company rights to develop the site into a proposed mixed-use project comprising a hotel, hotel residences and a retail mall, or other components approved by the relevant authorities. The EXSIM company is responsible for obtaining the necessary approvals and undertaking and completing the development at its own cost.
The July agreement provided for the guaranteed entitlement to be paid in three installments, with 10% paid on June 26 and another 15% on July 3. The remaining 75% amounted to RM311.26 million. Beyond the guaranteed entitlement, Aurora Tower is entitled to 10% of the portion of the development’s actual profit before tax exceeding RM610 million, subject to the agreement’s terms.
The agreement provides for a development period of 10 years from the landowner’s receipt of the full guaranteed entitlement, or an extended period agreed in accordance with its terms. In its July disclosure, UEM Sunrise said recognition of the guaranteed entitlement was expected to result in an estimated gain of about RM66 million, contributing positively to earnings for the financial year ending Dec 31, 2026.
In the same disclosure, UEM Sunrise said the proceeds were intended for partial repayment of borrowings and/or working capital requirements within 12 months of completion of the transaction. UEM Sunrise said in July that the arrangement would unlock value from a long-held land asset while allowing capital to be redeployed towards debt optimisation, working capital and higher-priority projects, particularly in the Central and Southern regions.
