Malaysia’s DRB-Hicom sells non-industrial land assets for $486m

Photo: DRB-Hicom website

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.

Reuters

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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