Malaysian conglomerate DRB-Hicom Bhd said on Thursday it was selling much of its non-industrial property assets and the entire hospitality portfolio for a total of 1.9 billion ringgit ($486.31 million).
The company, majority owned by Malaysian billionaire Syed Mokhtar al-Bukhary, said it will dispose of several subsidiaries owning a total of about 2,200 acres of land along with the hospitality portfolio to Prisma Dimensi Sdn Bhd (PDSB).
PDSB is a private property developer that is also owned by Syed Mokhtar.
The cash portion of the deal – which would leave DRB-Hicom’s property business with industrial land assets – is worth 289 million ringgit, while the rest would be settled via a cache of land bank in the southern Malaysian state of Johor near Singapore.
“With the incoming land bank in Johor, the group is in an advantageous position to tap into the high demand of industrial parks especially from Singapore, and DRB-Hicom intends to develop this into a high-tech and modern industrial park once the property market recovers from its current slumber,” Managing Director Syed Faisal Albar said.
The transaction is expected to be completed within the first quarter of 2019, the company said.
Last year, DRB-Hicom sold a 49.9 percent equity stake in struggling carmaker Proton to China’s Geely, though it still holds the remaining 50.1 percent.