Khazanah-led SPV, UEM in talks on Johor land deal

In today's Business Times, it carried the following article: Khazanah-led SPV, UEM in talks on Johor land deal

• Khazanah-led SPV, UEM in talks on Johor land deal
  By Francis Fernandez
  bt@nstp.com.my
  
  February 13 2007
  
  A FOUR-member special purpose vehicle (SPV) concern led by Khazanah Nasional Bhd is in an advanced stage of negotiations with UEM World Bhd to acquire some 2,000ha in Johor.
  
  It is understood that the SPV will sign an agreement soon, and that the acquisition will land UEM World an exceptional item gain of about RM500 million.
  
  UEM Land Bhd, a unit of UEM World, is developing a 9,669ha city at its Bandar Nusajaya project in Johor where it plans to build homes, waterfront property, offices, hotels, factories, hospitals and campuses for overseas universities, making it Malaysia's biggest real estate development.
  
  The township includes a new state administrative centre and theme parks, which were previously linked to Japan's Oriental Land - the Japanese partner for Tokyo Disneyland.
  
  Khazanah officials said they will not comment on market speculation.
  
  Khazanah has previously acquired land from UEM World specifically to build a destination resort, which includes a theme park.
  
  "The evaluation process for the destination resort is now being undertaken by Khazanah Nasional," UEM World said in a statement to the stock exchange.
  
  The state-controlled property developer further said that it is in talks with several bankers to raise financing for its projects in Nusajaya.
  
  Senior government officials confirmed UEM World is planning a major relaunch of the Nusajaya project on February 23, but said they were unaware of further acquisitions by the state-owned fund.
  
  UEM World will reveal plans for the Nusajaya project at the relaunch, several people who have been invited to attend the function said on condition of anonymity.
  
  Meanwhile, bankers familiar with the deal said that apart from Khazanah, the other members of the SPV include companies linked to billionaire Robert Kuok Hock Nien, Ekovest Bhd and a United Arab Emirates-owned investment fund.
  
  The 84-year-old Kuok, often billed at the Sugar King of Malaysia, controls a slew of public-listed companies across Malaysia, Singapore and Hong Kong.
  
  Kuok, estimated to have a wealth of RM21.5 billion in 2006, has plantation-related interests in Indonesia and China.
  
  He also controls PBB Group Bhd, Hong Kong's Kerry Properties Ltd and the Shangri-la hotel chain in Asia.
  
  It was reported late last week that Khazanah via a SPV is looking to buy a third of Danga Bay Sdn Bhd, which is controlled by Datuk Lim Kang Hoo, Ekovest's dominant stakeholder.
  
  Ekovest itself has an option to buy as much as 30 per cent of the enlarged paid-up of Danga Bay, the company said in a statement to Bursa Malaysia last year.
  
  The call and put option allows Ekovest to buy into Danga Bay at the net tangible asset (NTA) level. Danga Bay's total NTA is around the RM3.80 per share level.
  
  Under the call and put agreement, Ekovest has untill March to decide if it wants to enforce its option.
  
  The RM4 billion Danga Bay project involves a 15-year development of 559ha of waterfront land in Johor, located between central Johor Baru and new developments such as Bandar Nusajaya and the second crossing to Singapore in the western part of the city.